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15
×
What usually happens if wages increase?
Demand for labour decreases, supply of labour increases.
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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
×
What is meant by the supply of labour?
The number of workers willing and able to work at different wage rates.
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thief
Give points!
5
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15
20
25
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magnet
Take 25 points!
Okay!
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fairy
Take points!
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10
15
20
25
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banana
Go to last place!
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15
×
What happens if wages are below equilibrium?
Labour shortage.
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15
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What happens if wages are above equilibrium?
Labour surplus/unemployment.
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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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boom
Lose 50 points!
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seesaw
Swap points!
Okay!
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fairy
Take points!
5
10
15
20
25
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banana
Go to last place!
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15
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Using a DL and SL diagram, show an effect of an increased automation on the labour market.
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15
×
What is meant by derived demand?
Demand for labour depends on demand for the goods and services workers produce.
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boom
Lose 50 points!
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fairy
Take points!
5
10
15
20
25
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gift
Win 10 points!
Okay!
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banana
Go to last place!
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seesaw
Swap points!
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seesaw
Swap points!
Okay!
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rocket
Go to first place!
Okay!
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banana
Go to last place!
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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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15
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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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Give two factors that can increase the demand for labour.
Higher demand for products / economic growth / increased productivity.
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