CramPuppy - Free Revision Notes » Igcse » Economics » Demand for Labour
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Date: Sun, 21 May 2006 Time: 12:00 AM
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Demand for Labour
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Demand for labour: a derived demand. Demand for labour is indirect.
1. The demand for labour is determined by the demand for the output produced by the labour: They want him/her because what s/he makes is good. If his stuff is good, he is good.
2. The cost of labour/wage rates: Cost of production increased so there is less profit. Measure productivity (convert to money) to wage paid
3. More technology lessens the demand for labour: If there is a choice between labour and capital, capital is chosen because it cannot complain and it may be faster and more efficient.
A firm wants workers if it can pay less for them.
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by: Admin
Total views: 648
Word Count: 414
Date: Sun, 21 May 2006 Time: 12:00 AM
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