3.5.2

Question 1

What’s supply for labour?

Answer 1

The amount of workers willing and able to work at a specified wage.

Question 2

Name 2 reasons why supply for labour IN A PARTICULAR INDUSTRY may increase

Answer 2

• Another industry’s supply of labour may have decreased
• The non-financial rewards of one industry may have improved
• The non-financial rewards of one industry may have become worse

Question 3

When comparing industries whereby the supply of labour has increased in one and decreases in the other, what do we have to assume?

Answer 3

There’s a degree of high occupational mobility (similar skills needed for both jobs).

Question 4

What’s the definition of the elastic of supply for labour?

Answer 4

The change in responsiveness of supply for labour to a change in the wage rate.

Question 5

Name 2 factors that affect the elasticity of supply for labour

Answer 5

• Sense of vocation
• Qualifications and skills required
• Length of training
• Mobility of labour
• Time period (more elastic in the long-run

Question 6

Name 2 of the 7 factors that affect supply for labour

Answer 6

1. Change in the real wage rate
2. Pecuniary benefits of industry A
3. Non pecuniary benefits of industry A getting better
4. Non-pecuniary/pecuniary benefits of industry B getting worse
5. Size of working population
6. Compeitiness of wages
7. Knowledge of job opportunities

Question 7

What’s geographical immobility?

Answer 7

When there’s barriers for people moving from one area to another to find work.

Question 8

What type of unemployement does geographical immobility lead to?

Answer 8

Regional unemployment.

Question 9

What’s occupational immobility?

Answer 9

Occurs when workers don’t have the necessary skills to move from one occupation to another.

Question 10

What type of unemployment is caused by occupational immobility?

Answer 10

Structural unemployment.

It is caused by a mismatch of skills between the unemployed and available jobs.