Supply and demand in labour markets

Question 1

what is different in labour markets to traditional markets

Answer 1

producers demand labour and individuals supply labour

Question 2

what happens in traditional markets

Answer 2

consumers demand GaS and producers supply GaS

Question 3

which people are active labour supply

Answer 3

employees
self - employed
government schemes
unpaid workers
unemployed seeking work

Question 4

which people are inactive labour supply

Answer 4

students
retired
short/long term ill
discouraged workers

Question 5

what affects the supply of labour (7)

Answer 5

higher wages = more supplied
bigger working population
migration
preferences for work
work and leisure time
length of training required
taxes and benefits

Question 6

what affects the demand for labour (6)

Answer 6

a lower wage = more labour demanded
demand for GaS
labour productivity
profitability
substitutes e.g machinery
number of buyers

Question 7

what is meant by labour being derived demand

Answer 7

labour is from demand
e.g. if the GaS price increases then so will demand for labour