The Demand For Labour

Question 1

Aggregate demand for labour is also a derived demand…

Answer 1

If the economy is growing and firms are confident employment is likely to rise

Question 2

Factors affecting the demand for labour…

Answer 2

• the demand and expected future demand of the product
• wage rate
• price of other factors of production
• MRP

Question 3

Derived demand for labour definition

Answer 3

Demand for labour is determined by the demand for the goods that this labour would produce