Labour Market Equilibrium (HSC SSCE Economics): Flashcards
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Labour market equilibrium definition
Labour market equilibrium definition
Quantity of labour supplied equals quantity demanded
Direction of labour supply curve
Direction of labour supply curve
Slopes upward from left to right
Direction of labour demand curve
Direction of labour demand curve
Slopes downward from left to right
Result when wages are above equilibrium
Result when wages are above equilibrium
Unemployment exists
Result when wages are below equilibrium
Result when wages are below equilibrium
Labour shortage exists
Most important influence on labour demand
Most important influence on labour demand
Aggregate demand
Law explaining downward labour demand curve
Law explaining downward labour demand curve
Law of diminishing marginal returns
Labour supply behaviour at very high wages
Labour supply behaviour at very high wages
Becomes backward bending (supply decreases)
Effect of increased labour demand
Effect of increased labour demand
Higher wages and higher employment levels
Elasticity of high-skill labour supply
Elasticity of high-skill labour supply
More inelastic than low-skill markets