5. The labour market

Question 1

factors affecting demand for labour

Answer 1

wages
demand for product
productivity of labour
substitutes for labour
how profitable the firm is

Question 2

contribution per worker

Answer 2

marginal revenue product - wage per worker

Question 3

factors affecting supply of labour

Answer 3

wage
demographics
migration
taxes and benefits
skills

Question 4

factors effecting the elasticity of supply of labour

Answer 4

workforce and job skill
length of training
time period, short run is inelastic

Question 5

transfer earnings

Answer 5

minimum payment required to bring someone in

Question 6

economic rent

Answer 6

over and above the minimum payment

Question 7

power of TU

Answer 7

membership
demand curve elasticity
profitability of employer

Question 8

labour market flexibility and mobility

Answer 8

geographical mobility
ability to move between jobs due to skills

Question 9

flexibility of labour market

Answer 9

skilled workforce that can adjust jobs
flexible hours
self employment
non unionised workforce