Labour Market Shifts Flashcards

1
Q

What is derived demand

A

Demand for a FoP that is derived from the demand of another good/service
Eg the demand for builders is derived from demand for houses

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2
Q

What happens to labour if capital gets cheaper

A

Demand for labour decrease

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3
Q

What happens if workers move from their country

A

Labour supply decrease as there are less workers

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4
Q

What happens if workers move to another country

A

Labour supply will increase in the country they move to because there are more workers migrating into the country

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5
Q

What happens if there is higher income tax

A

Reduces take home income leading to a reduction in incentive to work leading to a decrease in labour supply

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6
Q

What are non-pecuniary benefits

A

Benefits of a job other than the wage received
Eg company car, job satisfaction

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