Th3.5: ^^ Wages Flashcards
1
Q
The supply of labour curve for an individual is a…
A
backward bending curve - an increase in wages will lead to an increase in hours worked at first but beyond a certain point, it will decrease in hours worked
2
Q
What are the two ways firms can increase the number of hours worked by its workforce?
A
it can increase the number of hours by its existing labour force or it can recruit new workers
3
Q
Therefore, although an increase in wage rates may not increase the number of hours worked by existing labour…
A
it will increase the number of workers - this is because new workers may join from other industries or from being unemployed