O-LevelEconomicsThe allocation of resources2281/11 · May/June 2016 · Q101 Mark

In the diagram, D₁D₁ and S₁S₁ represent the demand for and the supply of labour. W indicates a legal minimum wage. An influx of immigrant labour causes the supply curve for labour to shift from S₁S₁ to S2S2. [Figure 10.1] How many people will be employed if the minimum wage legislation is then abolished?

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A4 million

B5 million

C6 million

D7 million

✓ Correct answer

D: 7 million

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2016 Paper 1 Variant 1, question 10.

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