CH 22 The labour market

Question 1

What is the price of labour?

Answer 1

The wage rate

Question 2

What is wage rate?

Answer 2

The amount of money paid to workers for their services over a period of time

Question 3

What are the factors affecting the demand of labour?

Answer 3

-The demand for the product
-The availability of subistutes to labour
-The productivity of labour

Question 4

What is derived demand?

Answer 4

Demand that rises because there is demand for another good

Question 5

What are the factors affecting the supply of labour?

Answer 5

-The population size
-Migration
-Age of the population
-The retirement age
-School leaving age
-Female participation
-Skill and qualification of labour
-Labour mobility

Question 6

What is labour mobility?

Answer 6

The ease with which worker can move geographically and occupationally between jobs

Question 7

What is the importance of the quantity and quality of labour for businesses?

Answer 7

-Better-skilled labour leads to higher efficiency
-A larger labour pool means cheaper labour

Question 8

What is the impact of education and training on the quality of human capital?

Answer 8

-Higher quality means higher productivity
-Higher quality labour means higher chance of employment
-Helps job mobility
-Increases job satisfaction