3.5 Economics Revision

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Created by: kian burgess
Created on: 08-03-19 09:50

What is meant by supply of labour?

supply of labour refers to the number of people offering themselves as available to work in a particular industry.

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Give 5 factors affecting the demand for labour?

Seasonality/Wage rate/ Business Cycle/ Consumer Demand/ Government Subsidy

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Give 5 factors affecting the supply of labour?

Advertisement/ Wages/ Population size/ Education + training/ Welfare benefits/ Legislation

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What is the elasticity of demand for labour?

The responsiveness of the quantity demanded of labour to changes in the price of labour, the wage rate.

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Give determinants of the elasticity of demand for labour?

Time/ Availability of substitutes/ Elasticity of demand for the product/ The proportion of labour cost to total cost/ Strong union presence

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Give determinants of elasticity of supply for labour?

Working condition of job/Qualifications required/Time taken to gain qualifications/Location of job/The rate of unemployment

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What is labour immobility?

The ability of an economy to be able to transfer their labour resources between different uses.

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What is geographic immobility? What is occupational immobility?

Geographic immobility- The difficulties people have with finding jobs in different areas. Occupational immobility- Problems associated with workers being able to move between jobs.

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What are the key reasons for geographic and occupational immobility?

Geographic immobility reasons include- Transportation, friends and family ties, access to information, Housing costs. Occupational immobility reasons- Skills, education, experience.

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How does labour immobility cause market failure?

The lack of workers may mean that products/services cannot be provided in the quantities the market wants. Additionally, firms costs increase when skilling workers causing the prices to be higher than the market price.

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Other cards in this set

Card 2

Front

Give 5 factors affecting the demand for labour?

Back

Seasonality/Wage rate/ Business Cycle/ Consumer Demand/ Government Subsidy

Card 3

Front

Give 5 factors affecting the supply of labour?

Back

Card 4

Front

What is the elasticity of demand for labour?

Back

Card 5

Front

Give determinants of the elasticity of demand for labour?

Back

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3.5 Economics Revision