Workers

Question 1

What are Wage Factors?

Answer 1

Wage Factors are Financial Rewards that workers receive

Question 2

What is Demand for Labour ?

Answer 2

Demand for Labour Refers to number of workers a firm is willing to hire at a given wage and rate

Question 3

What is Derived Demand?

Answer 3

Derived Demand means something is in labour because demand for something else has increased.

Question 4

What Impacts the Demand for Labour?

Answer 4

1) The Level of Total Demand in the Economy
2) Productivity of Workers
3) Cost of Labour compared to cost of Technology and Machinery

Question 5

What is Supply of Labour ?

Answer 5

Supply of Labour consists of people who are both able and willing to work at given wage rates.

Question 6

What is the Labour Force Participation Rate?

Answer 6

The percentage of working population that works

Question 7

What is Labour Force Participation influenced by?

Answer 7

Labour force participation is influenced by:

1) The Number of Full Time and Part Time Workers in the Labour Force
2) The Number of women in the workforce
3) The Age Distribution of the Workforce
4) The Retirement Age of the Country
5) The Availability of Welfare benefits ( if high, then disincentive to work )
6) Changing Social Attitudes

Question 8

What is Geographical Mobility?

Answer 8

Geographical Mobility is the Willingness and ability of a person to relocate for employment.

Question 9

What Factors Influence Geographical Mobility?

Answer 9

1) Family Ties and Commitments

2) Costs of Living

Question 10

What is Occupational Mobility ?

Answer 10

Occupational Mobility is the extent to which a person is able to change between jobs.

Question 11

What is Equilibrium Wage Rate ?

Answer 11

Equilibrium Wage Rate is when the wage rate workers are willing to work for equals the amount employers are willing to pay.

Question 12

What Factors influence the Equillibrium Wage Rate ?

Answer 12

1) Relative Bargaining Power
2) Trade Unions- Strength in numbers
3) Age and Experience
4) Level of Education

Question 13

What is the National Minimum Wage ?

Answer 13

The NMW is the minimum amount a firm can pay its workers.

Question 14

What are advantages of the NMW ?

Answer 14

1) Workers are not exploited
2) Unemployed people have incentives to work
3) Low income earners can spend more, increasing consumption

Question 15

What are Disadvantages of the NMW ?

Answer 15

1) Higher earners may request wage increases to maintain wage gap
2) Unemployment may increase, as Cost of Production increases for firms

Question 16

What are Differences between Public Sector and Private Sector Workers ?

Answer 16

Private Sector Jobs have Higher earning potential as they strive for Profit Maximisation.
Public Sector has more Job Security

Question 17

What are causes for the Differences in wages between Male and Female Workers?

Answer 17

Female Workers often face Discrimination, accept low paying jobs for flexibility, and take career breaks.