Labour Market Shifts Flashcards
1
Q
What is derived demand
A
Demand for a FoP that is derived from the demand of another good/service
Eg the demand for builders is derived from demand for houses
2
Q
What happens to labour if capital gets cheaper
A
Demand for labour decrease
3
Q
What happens if workers move from their country
A
Labour supply decrease as there are less workers
4
Q
What happens if workers move to another country
A
Labour supply will increase in the country they move to because there are more workers migrating into the country
5
Q
What happens if there is higher income tax
A
Reduces take home income leading to a reduction in incentive to work leading to a decrease in labour supply
6
Q
What are non-pecuniary benefits
A
Benefits of a job other than the wage received
Eg company car, job satisfaction
