Workers

Question 1

What are some wage factors affecting choice of occupation?

Answer 1

1. Wage/Salary/Monetary Benefits
2. Time based or Piece rate payment
3. Overtime rate
4. Incentives/Bonus
5. Commission
6. Pension

Question 2

What are some non-wage factors affecting choice of occupation?

Answer 2

1. Passon - job satisfaction
2. Ambience
3. Fringe benefits
4. Geographical location
5. Number of Holidays
6. Future prospects
7. Job security

Question 3

Why is the labour-supply curve a hyperbola?

Answer 3

1. After a particular wage, workers prefer to spend some more leisure time
2. Thus, the extra wage does not incentivise them
3. This makes the labour supply curve backward bending (a hyperbola)
4. This is usually applicable to older workers - who have families and want to relax

Question 4

What is the labour market?

Answer 4

The labour market is a place where the demand and supply for labour meet.

Question 5

Why is labour demand known as derived demand?

Answer 5

Labour demand is derived from the demand of goods and services, thus it is known as derived demand.

Question 6

What are the determinants of the demand for labour?

Answer 6

1. Productivity - if workers are more productive then there will be an increase in the demand for labour
2. Demand for the Product - if there is a higher demand for a product then there will be an increase in the demand for labour
3. Cost of substitutes
4. Price Elasticity of Demand for Labour

Question 7

What is the PED for labour?

Answer 7

Formula:
PED = (% Change in the Quantity Demanded for Labour)/(% Change in wage)

PED of labour is elastic for unskilled labour
PED of labour is inelastic for skilled labour

Question 8

What are the determinants of the supply of labour?

Answer 8

1. Population
2. Skills and Education
3. Working Conditions
4. Price Elasticity of Supply for Labour

Question 9

What is the PED for labour?

Answer 9

Formula:
PES = (% Change in the Quantity Supplied for Labour)/(% Change in wage)

PES of labour is elastic for unskilled labour
PES of labour is inelastic for skilled labour

Question 10

What are trade unions?

Answer 10

Trade unions are organisations of workers that negotiate with employers on the behalf of workers.

Question 11

What are the objectives of Trade Unions?

Answer 11

1. Higher wage rates
2. Better working conditions

Question 12

How do trade unions meet their objectives?

Answer 12

Trade unions meet their objectives of higher wage rates and better working conditions through bargaining. Bargaining powers can be exercised by taking industrial actions (such as strikes, slow down of working and work to rule) which disrupt production.

Question 13

What are two forms of governemnt intervention?

Answer 13

1. Minimum wage laws (NMW - National Minimum Wage) - leads to unemployment
2. Employment regulation

Question 14

What is the primary sector?

Answer 14

The primary sector involves the extraction of raw materials. Examples are fishermen, coal miners.

Question 15

What is the secondary sector?

Answer 15

The secondary sector involves manufacture using the raw materials extracted from the primary sector. Examples are factories, building roads, etc.

Question 16

What is the tertiary sector?

Answer 16

The tertiary sector, also known as the service sector, provides services to individuals and businesses. It facilitates the sales of goods and it not involved in production directly. Examples are transport of goods, retails and teaching.

Question 17

What is the division of labour?

Answer 17

The division of labour occurs when workers specialise in one aspect of a particular task. Thus, instead of one worker doing everything, the workload is divided into multiple people.

Question 18

What is specialisation?

Answer 18

Specialisation is when individuals, firms, or countries focus on producing a limited range of goods or services only.

Question 19

What are the advantages and disadvantages of specialisation?

Answer 19

Advantages -
Higher efficiency
Greater output
Reduced workload per worker (tasks are divided)

Disadvantages -
Over-dependence on one industry (lack of diversification)
Work becomes monotonous