theme 3 pros/cons and factors

Question 1

factors of demand for labour

Answer 1

wage rates
Demand for product
Price of other FOP
regulation
technology

Question 2

factors of WED

Answer 2

Substitution of labour
Elasticity of good
Cost at total %
Time

Question 3

factors of supply of labour

Answer 3

• wages
• population
• distribution of age
• non-monetary benefits
• education and training
• TU and barriers
• legislation

Question 4

market failure in labour market

Answer 4

Occupation immobility
Geographical immobility
excess supply/demand

Question 5

factors of WES

Answer 5

• levels of qualification required
• availability of workers to poach
• time

Question 6

reason for wages differentials

Answer 6

productivity of labour
Presence of monopsony
discrimination

Question 7

labour market issues

Answer 7

• skill shortages (geo and occ immobility)
• young workers (struggle for jobs)
• retirement (ageing population)
• wage inequality
• zero-hour contract
• the gig economy
• migration`

Question 8

NMW pro

Answer 8

• reduce poverty
• reduce wage differentials
• loyalty to business
• higher productivity
• reduce unemployment trap

Question 9

NMW con

Answer 9

• loss jobs in industry
• raise cost for firms
• wage spiral (unsatisfied)
• no consideration of regional differences
• secondary earners (the economist)

Question 10

CMA control monopolies

Answer 10

Block mergers
price regulation
profit regulation
windfall tax
quality standard
performance target

Question 11

promoting competition and contestability

Answer 11

• training and grants
• deregulation
• privatisation
• competitive tendering

Question 12

pro of privitisation

Answer 12

• greater competition
• reduce excess admin cost
• efficiency gains