Economics Grade 10: Demand for Labour

Flashcards covering Grade 10 Economics notes on Labour Relations, specifically focusing on the demand for labour, wage rate influence, economic performance, and labour productivity.

What does it mean that the demand for labour is a derived demand?

It means labour is demanded only if there is demand for goods and services.

What happens to the demand for labour if the demand for goods and services decreases?

The demand for production decreases, therefore less labour will be demanded.

How is a wage rate defined in the notes?

A wage is the price paid for hiring labour.

According to the notes, what quantity of labour is demanded at a wage rate of $R7000$?

$$50$$

What happens to the quantity of labour demanded when the wage rate decreases to $R3000$?

The quantity demanded of labour increases to $120$.

How does the law of demand apply to the demand for labour?

At a higher price (wage rate), demand is low, and at a lower price, demand is high.

How does an upswing period in the economy affect the demand for labour?

During an upswing period, high economic growth leads to more goods and services being produced and sold, making the demand for labour high.

How does a downswing period in the economy affect the demand for labour?

During a downswing period, economic growth is low, so less labour is demanded (hired).

What is productivity?

Productivity is the relationship between the quantity of goods and services produced and the quantity of resources used.

When is labour considered productive?

Labour is productive when each worker produces more goods and services.