3.5 - Demand for Labour Flashcards

1
Q

What is the demand for labour?

A

Quantity of workers an employer/business is willing and able to hire at a given wage rate within a given time period

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2
Q

What type of demand is the demand for labour?

A

Derived
Not wanted for its own sake, but for what can be produced by it

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3
Q

When will demand for labour typically rise?

A

Demand rises
Product price rises

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4
Q

What is labour demand graphed according to?

A

Wage Rate
Employment

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5
Q

What does labour demand generally have an inverse relationship with?

A

Wage Rate

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6
Q

What will a fall in the wage rate create?

A

Substitution effect
Labour relatively cheaper than capital
Expansion in labour demand + force

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7
Q

What affects the aggregate demand for labour?

A

Economic strength/activity
Strong => Demand + Employment

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8
Q

Why may fewer workers be needed to satisfy future levels of aggregate labour demand?

A

Automation
Improved education
Improved training programmes

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