Markets In Action

Question 0

The housing market

Answer 0

This is not a single market. There is the owner-occupier market and the private and public market.

Question 1

Commodity market

Answer 1

Markets for various types of raw materials used in the production process of manufacturing industries. Prices are volatile.

Question 2

Owner-occupier

Answer 2

Its the largest single transaction, funded by borrowing

Question 3

The labour market

Answer 3

Its the factor of production. The price of labour is the wage rate.

Demand for LABOUR is DERIVED DEMAND.

Question 4

Demand for labour

Answer 4

The demand curve for labour shows the relationship between the quantity of labour demanded by firms and the wage rate.

Its DERIVED demand

Question 5

Supply of labour

Answer 5

The supply curve for labour shows the relationship between the quantity of labour supplied and the wage rate.

Question 6

Factors affecting the demand for labour

Answer 6

The price of other factors of production 
The price of other workers
New technology 
Increased efficiency 
Demand for the product

Question 7

Factors affecting the supply of labour

Answer 7

Natural population changes 
Migration 
Welfare benefits 
Trade unions 
Income tax and national insurance contributions

Question 8

Trade unions

Answer 8

Organisations of workers with a range of economic, social and political aims.

Question 9

Purpose of trade unions

Answer 9

Improve the real incomes of their members
Better working conditions and pensions
To provide job security
Protect their workers from unfair dismissal
Provide a counter balance
Protect from employment-related discrimination