Demand for Labour (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
In labour markets, what is the key difference from goods markets?
In labour markets, what is the key difference from goods markets?
Households supply, firms demand labour
What does it mean that demand for labour is a 'derived demand'?
What does it mean that demand for labour is a 'derived demand'?
Firms demand labour to produce goods consumers want
What happens to as more workers are added to fixed capital?
What happens to as more workers are added to fixed capital?
It eventually falls due to diminishing returns
How is calculated in perfect competition?
How is calculated in perfect competition?
multiplied by price
Under perfect competition, what does the curve represent?
Under perfect competition, what does the curve represent?
The firm's demand curve for labour
At what point does a firm maximize profit when employing workers?
At what point does a firm maximize profit when employing workers?
When equals the wage rate
What causes a shift of the entire demand curve for labour?
What causes a shift of the entire demand curve for labour?
Changes in labour productivity
How does labour-saving technology affect the demand curve for labour?
How does labour-saving technology affect the demand curve for labour?
Shifts it to the left
When is demand for labour likely to be relatively inelastic?
When is demand for labour likely to be relatively inelastic?
When labour costs are small % of total costs