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Economics_A-level_Edexcel

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  1. 1-1-nature-of-economics
    6 主题
  2. 1-2-how-markets-work
    10 主题
  3. 1-3-market-failure
    4 主题
  4. 1-4-government-intervention
    2 主题
  5. 2-1-measures-of-economic-performance
    4 主题
  6. 2-2-aggregate-demand-ad
    5 主题
  7. 2-3-aggregate-supply-as
    3 主题
  8. 2-4-national-income
    4 主题
  9. 2-5-economic-growth
    4 主题
  10. 2-6-macroeconomic-objectives-policies
    4 主题
  11. 3-1-business-growth
    3 主题
  12. 3-2-business-objectives
    1 主题
  13. 3-3-revenues-costs-and-profits
    4 主题
  14. 3-4-market-structures
    7 主题
  15. 3-5-labour-market
    3 主题
  16. 3-6-government-intervention
    2 主题
  17. 4-1-international-economics
    9 主题
  18. 4-2-poverty-inequality
    2 主题
  19. 4-3-emerging-developing-economies
    3 主题
  20. 4-4-the-financial-sector
    3 主题
  21. 4-5-role-of-the-state-in-the-macroeconomy
    4 主题
  22. 5-1-the-exam-papers
    3 主题
  23. 5-2-economics-a-level-skills
    1 主题
  24. 5-3-structuring-your-responses
    9 主题
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Factors That Influence The Demand for Labour

  • The labour market is composed of sellers of labour (households) and buyers of labour (firms)

    • Workers supply their labour and firms demand labour

  • The demand for labour is a derived demand

    • This means that it depends on the demand for goods/services

      • If demand for goods/services increases then the demand for labour will increase – and vice versa

Factors That Influence The Demand for Labour

The price of the product being produced

The demand for the final product

  • If the selling price of the product increases, it increases the marginal revenue product of labour and the firm will demand more labour

  • Higher priced products incentivise firms to supply more (law of supply) and demand for labour will continually increase with increasing prices

  • As demand for labour is a derived demand, when an economy is booming, then demand for normal goods/services will be high, and the demand for labour will be high

  • Conversely, when an economy is in a recession demand for normal goods/services will be lower, and the demand for labour will be lower

The ability to substitute capital (machinery) for labour

The productivity of labour

  • Firms will regularly evaluate whether it is more cost-effective to switch production from using labour to capital (machinery)

  • If it is more cost-effective, then demand for labour will fall

  • If the productivity of labour increases (possibly through training), this will lower average costs, and firms will likely demand more labour

Examiner Tips and Tricks

Research examples of occupations that are increasingly becoming more capital intensive to use in your essay answers. Will AI replace your job?

Responses

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