1)

How would each of the following factors be likely to affect the economy-wide supply of labour?

a) The compulsory retirement age is increased

b) An increase in the productivity of workers.

c) War preparations lead to the institution of a national draft, and many young people are called up.

d) More people decide to have children (consider both short-run and long-run effects). e) Social security benefits are made more generous.

2)

If employers are under perfect competition, why will a trade union only be able to force wages up at the expense of employment?