labour markets

Question 1

1. Factors that affect elasticity of labour supply

Answer 1

There are three main factors:

Skills & Qualifications
Unemployment
Time

Question 2

2. Skills & Qualifications

Answer 2

In markets where workers require few skills or qualifications, supply will be elastic.

In markets where workers require lots skills or qualifications, supply will be inelastic.

Question 3

3. Unemployment

Answer 3

When unemployment is high, there are lots of people looking for work, so workers will be very responsive, suggesting labour supply is elastic.

When unemployment is low, there are very few people looking for work, so workers will be unresponsive, suggesting labour supply is inelastic.

Question 4

4. Time

Answer 4

In the short run, without enough time to apply or train for jobs, workers won’t be able to respond much so supply of labour will be inelastic.

In the long run, there’ll be more time apply and train for jobs, so workers will be able to respond more so supply for labour will be elastic

Question 5

occupational immobility

Answer 5

• workers find it hard to move between jobs because they lack skills needed

Question 6

geographical immobility

Answer 6

workers struggle to move between different areas

Question 7

how to reduce geographically immobility (3)

Answer 7

• relocation subsidies , subsidised housing, improving public transport
• reducing legal barries to immigration eg free trade area like EU

Question 8

how to reduce occupationally immobility

Answer 8

free/ subsidised training or uni degrees or practical courses

Question 9

how does free/ subsidised training or uni degrees or practical courses help reduce occupational immobility

Answer 9

• gain skills that are transferrable

- raise skills to carry out a wide range of jobs

Question 10

example of a subsidised training program

Answer 10

the royal academy of engineering to remove 55,000 shortage

Question 11

examples of improved public transport

Answer 11

the cross rail link from reading to the city of London

Question 12

disadvantage of immigration

Answer 12

• greater labour supply
• reduction in wages
• increased poverty
• cannot move to more expensive places
• lower quality of education

Question 13

evaluation of public transport

Answer 13

cost 55 billion for HS2, expensive

Question 14

nationalisation of education evaluation

Answer 14

-make take courses that may not builed skills eg surfing

Question 15

beats monopoly percent

Answer 15

70 percent

Question 16

beats AR and AC

Answer 16

199 dollars and 18 dollars

Question 17

how much does google invest

Answer 17

9bn a year and provides free programs