3.5.1: Demand For Labour

Question 1

What is demand for labour?

Answer 1

How many workers an employee is willing & able to hire at a given wage rate in a given time period.

Question 2

Demand for labour is a ________ ________.

Answer 2

Derived demand.

Question 3

What is derived demand?

Answer 3

The demand for labour that comes as a result of the demand for a good/service.

Question 4

What are the factors that affect demand for labour?

Answer 4

-Wage Rate: the higher the wage, the more likely a firm is to switch to capital production.
-Demand For The Product: the higher the demand for the product, the higher the demand for labour.
-Productivity Of Labour: the more productive workers are, the higher the demand for labour.
-Technology: the more advanced technology is, the lower the demand for labour.