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Intro to labour market Flashcards | StudBud

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What is the real wage?

Who demands labour in the labour market model?

Intro to labour market

8 terms·StudBud Administration·368 plays

NZ #NCEA Level 2 #Unemployment

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Questions 8

Answers

1
Who demands labour in the labour market model?
Producers
Demanders
Households
Suppliers
2
What is the real wage?
What your wage can actually buy in goods and services
The wage you get for being true to yourself
Non-monetary compensation like a company car
The real monetary value of your pay
3
At equilibrium, what is unique about involuntary unemployment?
It does not exist
It's 100%
It is only structural
It is only cyclical
4
At the level of full employment, why does the labour supply curve become vertical?
Because the economy is doing extremely well
There are no more workers to fill jobs
Employers are not paying a high enough wage
Because everyone is tired and can no longer work
5
Why does the quantity demanded of labour decrease when the real wage increases?
Law of supply
Law of quantity supplied
Law of demand
Law of quantity demanded
6
Why is the demand for labour derived demand?
Labour demand comes from producers
Trick question - labour demand is not derived demand
It's derived from demand for the good or service it produces
Because wages and salaries are derived from labour
7
Who supplies labour in the labour market model?
Households
Demanders
Producers
Suppliers
8
Why does the quantity supplied of labour decrease when the real wage decreases?
Law of supply
Law of quantity supplied
Law of demand
Law of quantity demanded