3.5 - Labour Market: Key Terms

Question 1

Age dependency ratio

Answer 1

Younger than 15 + Older than 64/15-64

Question 2

Capital Labour Substitution

Answer 2

Replacing labour with capital as means of improving productivity

Question 3

Demand for labour

Answer 3

Number of workers a firm is willing/able to employ in given time period + given WR

Question 4

Derived Demand

Answer 4

Demand for FOP as result of demand for its final product

Question 5

Discouraged Workers

Answer 5

Long term unemployed who stop job search + exit labour market

Question 6

Economic Inactivity

Answer 6

Out of work + not seeking job

Question 7

Gig Economy

Answer 7

Fragmented work where someone is given a task for a certain amount of time

Question 8

Labour Force

Answer 8

Working age, willing + able to work
Employed + Unemployed

Question 9

Labour Supply

Answer 9

Quantity of hours individuals are willing/able to supply at given time period + WR

Question 10

Participation Rate

Answer 10

Proportion of working age population within the labour force

Question 11

Trade Union

Answer 11

Collective of workers that bargains with employers to improve working conditions

Question 12

Union Density

Answer 12

Percentage of particular labour force that belongs to a union

Question 13

Zero Hour Contracts

Answer 13

Job with no minimum guarantee of weekly working hours