3.5 Labour Markets Flashcards
1
Q
What is Derived Demand?
A
The demand for labour is derived demand as it is derived from demand for the product the labour produces.
2
Q
What are some factors influencing demand for labour?
A
- Wage rates
- Demand for the product
- Prices of other factors of production
- Wages in other countries
- Technology
- Regulation
3
Q
What does the PED of labour mean?
A
This is the responsiveness of the quantity demanded of labour to the wage rate.
4
Q
What are some factors influencing supply of labour?
A
- Wages
- Population and distribution of age
- Non-monetary benefits
- Education/ training/ qualifications
- Trade unions
- Wage and conditions of other jobs
- Legislation
5
Q
What is Occupational Immobility?
A
Where workers find it difficult to move from one job to another because of a lack of transferable skills.
6
Q
What is Geographical Immobility?
A
where they find it difficult to move from one place to another due to the cost of movement, family etc.
7
Q
What does the PES of labour mean?
A
This is the responsiveness of supply to a change in wage rates.
