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17 Cards in this Set
- Front
- Back
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What is derived demand for labour? |
When demand is based on what taht thing can produce, not the thing itself |
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What are the Factors affecting the demand for labour? |
Wage, demand for the product, labour productivity, capital productivity, the price of the product |
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What is wage elasticity for labour? |
Responsiveness of the quantity demanded for labour to a change in labour |
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What are the factors affecting wage elasticity of demand for labour? |
The proportion of labour costs (what percentage of product cost is via labour), the PED, whether capital and labour is substituted (self-service checkout), Time (can substitute labour for capital long-term |
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Using an example, Explain Marginal Revenue product theory (MRP) |
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Draw and explain the graph for MRP |
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What are the factors affecting the supply of labour in an industry? |
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What are the factors affecting the wage elasticity of the supply of labour? |
Availability of workers, skills and qualifications of workers, nature of job (e.g. vocational jobs), labour immobility |
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What happens to supply of labour in the short run and long run? |
Short run- industry inelastic as most jobs require training so people can't switch jobs easily Long run- industry more elastic as people can engage in training |
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Explain with diagram economic rent and transfer earnings |
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Define wage differentials and explain the main reasons for labour markets |
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Draw the determination of wages for an increase in demand and an increase in supply |
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Define trade unions, and draw a diagram of how they impact labour markets |
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Using examples define what a monopsony is? |
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Draw a monopsony diagram |
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What is a bilateral monopoly |
Labour Market that includes a trade union and a monopsony employer |
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What are the government methods for increasing labour flexibility/mobility |
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