the labour market (2.7) Flashcards
what is the labour market
where workers sell there labour and employers buy the labour: it consists of households supply of labour and firms demand for labour
what is the supply of labour
the total number of people who are willing and able to supple their labour , including the unemployed
what type of demand is there for labour
derived demand. - the demand for labour depends on the demand for the product that labour helps to produce.
what are the factors affecting demand for labour
- state of the economy
- increased demand
- wage rates
- real wages
- productivity of labour
- profitability of firms
what are the factors affecting supply of labour
- wage rate
- other money payments
- size of work population
- non-monetary factors
- barriers to entry
- education and training
what is gross pay
the amount of money that an employee earns before any deductions are made
what is income tax
a tax levied directly on a personal income
what is national insurance
a contribution paid by workers, and their employers, towards the cost of state benefits.
what is net pay
the amount of money that an employee is left with after deductions are made from the gross income
what is a pension
a fixed amount paid at regular intervals to a person, or their surviving dependents
