Chpt 4 Laboru Market

Question 1

Lines of labour market diagram

Answer 1

Y axis: Wage rate

X-axis: Quantity of workers

DD curve: demand for labour by FIRMS

SS curve: Supply of labour by HOUSEHOLDS

Question 2

Define labour demand

Answer 2

Labour demand is the number of workers firms are willing and able hire at various wage rates, over a given period of time, ceteris paribus

Question 3

Define labour supply

Answer 3

Labour supply is the number of workers willing and able to work for firms at various wage rates, over a given period of time,
ceteris paribus

Question 5

Summary of factors affecting demand of labour

Answer 5

1. Demand of final product
2. Demand of substitutes
   3.

Question 6

Summary of factors affecting supply of labour

Question 7

Factors affecting labour demand