economic decisions - resource allocation

What are the 3 factors that affect supply?

Cost of raw materials, cost of wage, worker productivity

How does the cost of raw materials impact supply?

An increase in the cost of raw materials leads to a decrease in supply, as it raises production costs and lowers profit margins for producers, causing them to supply less at any given price.

What impact has the Russian war on Ukraine had on the supply of grain?

Supply of grain has decreased

What impact does the Russian war on Ukraine have on the price of grain worldwide?

Prices are increased

What impact might an increase in price have on consimers?

Consumers must pay more therefore demand decreases.

What is the global employment crisis?

More jobs available than employees to fill positions.

What are 5 reasons for wage change?

• Manual tasks have been replaced by automisation

• Brain drain (workers go to work abroad)

• Changes in legislation (eg. Brexit - fewer foreign workers)

• Rises in cost of living (forced to give pay rises)

  • New roles = workers aren’t trained

What are 3 impacts for wage changes?

• Law of supply + demand means that potential employees can demand higher wages.

• Business must offer additional financial + non-financial incentives to make the role appear more appealing

• Older people who have retired are being asked to return to work + those about to retire are asked to stay longer.