3.5 Labour Market

Question 1

Demand for labour definition

Answer 1

the qty of labour that employers want to hire at each wage rate

Question 2

What is MRP

Answer 2

Marginal revenue product- the extra revenue generated by an individual worker

Question 3

factors influencing demand for labour (5)

Answer 3

Wage rates
Demand for the product
prices of other FoP - if machinery becomes cheaper , less labour is needed
wages abroad

Question 4

Supply of labour definition

Answer 4

ability and willingness of people to make themselves available for work at each wage rate

Question 5

factors influencing supply of labour (4)

Answer 5

wages
population
level of education/training
non-monetary benefits

Question 6

2 types of immobility that labour suffers from

Answer 6

Occupational
Geographical

Question 7

Occupational immobility definition

Answer 7

when workers find it difficult to switch jobs due to a lack of transferrable skills

Question 8

Geographical immobility definition

Answer 8

when its hard to switch jobs due to cost of movement
eg. rent in London

Question 9

Wages in perfect competition

Answer 9

determined by supply and demand and all workers are paid the same