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15
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What usually happens if wages increase?
Demand for labour decreases, supply of labour increases.
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boom
Lose 50 points!
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magnet
Take 25 points!
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shark
Other team loses 25 points!
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lifesaver
Give 20 points!
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15
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What is geographical mobility of labour?
The ability of workers to move between locations for work.
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15
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What happens if wages are below equilibrium?
Labour shortage.
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15
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Why might firms reduce labour demand after introducing machines?
Machines can replace workers.
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15
×
What is the equilibrium wage rate?
The wage where demand for labour equals supply of labour.
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baam
Lose 20 points!
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gift
Win 20 points!
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rocket
Go to first place!
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thief
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25
15
×
Give one non-financial factor affecting labour supply.
Working conditions / job satisfaction / flexible hours.
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15
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How can trade unions influence wages?
They may negotiate for higher wages and better working conditions.
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15
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Using a DL and SL diagram, show an effect of a better education on the labour market.
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15
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What is meant by a wage rate?
The amount paid to a worker for their labour.
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15
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Using a DL and SL diagram, show an effect of worsening working conditions on the labour market.
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15
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How can higher productivity affect wages?
More productive workers may earn higher wages.
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baam
Lose 5 points!
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shark
Other team loses 10 points!
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gift
Win 10 points!
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thief
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25
15
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Give two factors that can decrease the demand for labour.
Recession / automation / lower demand for products.
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banana
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magnet
Take 20 points!
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fairy
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25
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banana
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