The labour market Flashcards
What is the labour market?
The labour market is where workers offer their skills and services in exchange for wages, and employers demand labour to produce goods or services.
What are the main factors affecting the demand for labour?
Demand for labour is influenced by factors such as wage rates, productivity, demand for goods and services, and the cost of capital (e.g., machines).
What is the supply of labour?
The supply of labour refers to the number of workers willing and able to work at various wage levels in a given time period.
What factors affect the supply of labour?
Factors include wage levels, working conditions, education and training, migration, and government policies.
What is the equilibrium wage in the labour market?
The equilibrium wage is the wage rate at which the quantity of labour supplied equals the quantity of labour demanded.
What is the difference between a skilled and unskilled workforce?
Skilled workers have specific training or qualifications, while unskilled workers perform jobs that require little or no specialized skills.
What role does the government play in the labour market?
The government influences the labour market through minimum wage laws, taxation, welfare policies, and regulations ensuring fair working conditions.
What is wage elasticity of labour demand?
It measures how much the quantity of labour demanded changes in response to a change in wage rates.
What is the impact of trade unions on the labour market?
Trade unions can influence wages, working conditions, and employment levels by collective bargaining with employers.
How does technological change affect the labour market?
Technological advancements can increase demand for skilled workers, reduce demand for unskilled workers, and lead to automation of certain jobs.
