Labour Market

Question 1

What is wage equal to?

Answer 1

W=MC=MRP

Question 2

MRP

Answer 2

Change TR/Change no workers

Question 3

VMP value of margina product

Answer 3

MRP=MPP*P

Question 4

Alternative formula for MRP

Answer 4

MRP=MPP*MR

Question 5

What does the curve of MRP rep?

Answer 5

Demand (downward sloping section

Question 6

MP Theory

Answer 6

Profit-max firms will employ extra units of a variable factor up to the point where the additional cost of the factor equals the extra rev it produces

Question 7

Substitution effect

Answer 7

Higher wage=>work more bc leisure means higher oppo cost

Always positive

Question 8

Income effect

Answer 8

With higher wages ppl can afford to work less and have more leisure

Question 9

Geographical immobility

Answer 9

Unable to move to different places to seek job
Family ties and living cost and travel
Relocation sub

Question 10

Occupational immobility

Answer 10

Unable to move between jobs as they lack appropriate skills or training
Manu to service

Question 11

Zero-hour contract

Answer 11

Workers r given a permanent contract but no min hours to be worked

Question 12

Employment raté

Answer 12

Employed / working age population