a) Demand for labour

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9 Terms

1
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  • the demand for labour is…


  • derived


2
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  • the demand for labour is derived because…


  • it depends on the demand for the produced good/service


3
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  • marginal revenue product of labour


  • revenue from employing one additional unit of labour


4
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  • the demand for labour = ?


  • MRPL


5
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  • the factors that influence the demand for labour


  • the demand for the good/service

  • the price of the good/service

  • the ability to substitute labour for capital

  • the productivity of labour


6
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  • if the demand for the good/service increases…


  • the demand for labour increases


7
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  • if the price of the good/service increases…


  • the MRPL increases

  • the demand for labour increases


8
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  • if the ability to substitute labour for capital is high…


  • the demand for labour decreases


9
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  • if the productivity of labour increases…


  • the cost per unit of output decreases

  • production costs decrease

  • the demand for labour increases