The Labour Market Flashcards
What is the demand for labour?
Derived demand
What are the factors affecting the demand for labour? (3)
Price of labour
Productivity
Price of other factors of production
What is the MRP?
MP x MR
What causes an increase in the MRP? (3)
Improved training
Better management
Better capital
How do you calculate the elasticity of the demand for labour?
% change in DfL/% change in wages
What does the supply of labour depend on? (3)
No. of skilled workers
Non-wage benefits
Wages
What is the labour supply?
Total no. of hours an employee is willing and able to supply at a given wage rate
What is the labour force?
Total no. of people in work/seeking employment and available to start
What is net advantage?
Welfare derived from wages (what we buy) Welfare derived from work (job satisfaction)
What is a monopsony?
A single buyer in a market
What is a trade union?
A collective association of workers who aim to improve wages and other conditions of work of its members
What is wage discrimination?
Paying different workers different wages for doing the same job
What is income?
A flow of money to a factor of production
What is wealth?
A stock of valuable assets
What are the sources of wealth? (ICES)
Inheritance
Chance
Entrepreneur
Savings
