5.2-Supply of labour Flashcards
What is the definition of the supply of labour?
The total number of workers willing and able to work at different wage levels in a given time period.
True or False: The supply of labour is perfectly inelastic.
False
What factors influence the supply of labour?
Wage rates, working conditions, education and training, demographic factors, and government policies.
Fill in the blank: The supply of labour curve generally slopes ___ from left to right.
upwards
What does a shift to the right in the supply of labour curve indicate?
An increase in the quantity of labour supplied at every wage rate.
Which demographic factor can significantly affect the supply of labour?
Age distribution of the population.
True or False: Higher wages always lead to an increase in the supply of labour.
False
What is meant by ‘labour market participation rate’?
The percentage of the working-age population that is either employed or actively seeking employment.
Name one government policy that can affect the supply of labour.
Minimum wage laws.
What is the relationship between wage rates and the quantity of labour supplied?
As wage rates increase, the quantity of labour supplied generally increases.
Fill in the blank: The supply of skilled labour is usually ___ than that of unskilled labour.
lower
What is the effect of improved education and training on the supply of labour?
It increases the supply of skilled labour.
True or False: A decrease in the retirement age would likely decrease the supply of labour.
True
What is ‘labour mobility’?
The ability of workers to move between jobs and locations.
What does an outward shift in the labour supply curve indicate?
An increase in the number of workers available at every wage level.
Which type of labour is typically in higher demand: skilled or unskilled?
Skilled labour.
Fill in the blank: A high level of job security can lead to a ___ in the supply of labour.
decrease
What is the impact of immigration on the supply of labour?
It generally increases the supply of labour.
True or False: Seasonal employment affects the supply of labour.
True
What does the term ‘substitution effect’ refer to in labour supply?
The phenomenon where higher wages attract workers from other sectors.
What is ‘complementarity’ in the context of labour supply?
When an increase in the supply of one type of labour leads to an increase in the demand for another type.
Fill in the blank: The ___ effect occurs when higher wages lead to fewer hours worked by some individuals.
income
What role does technology play in the supply of labour?
It can change the demand for certain skills and therefore affect the supply of labour.
What is the ‘labour supply elasticity’?
A measure of how responsive the quantity of labour supplied is to changes in wage rates.
