Табыс критерийлері:
ASSESSMENT
(CRITERIA)
Evaluate the present scenario about the type of labour market given to you.
MRP > MC , then the firm will employ the worker since it will increase profit.
The firm only employs up to the point where MRP=MC
Demand for Doctors > Demand for cleaner
Demand for Doctors is inelastic as there is a high demand for doctor
Participation rate =
unemployment rate =
unemployment
Labour force
Employment rate =
number of people currently employed
population of working age
The total number of hours that labour is willing and able to supply at a given wage rate.
Substitution effect of a rise in wages: E to F
Workers will tend to substitute income for leisure as leisure now has a higher opportunity cost. This effect leads to more hours being worked as wages rise
Income effect of a rise in wages: F to G
This occurs when an increase in wages causes workers to work fewer hours.
This is because workers can get a higher income by working less hours. Therefore they may work less.
The Supply curve for Labour tends to be upwardly sloping
New Equilibrium Wage Rate
Demand for Labour = New Supply of Labour
(Wage rate decrease)
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