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The Labour Market (MRP (Shape of MRP curve (Law of diminishing Returns,…
The Labour Market
Factor of Production
Land
Characteristics; fixed in supply, non-specific, P doesn't affect Q, lack of mobility.
Demand is derived
Return/payment = Rent
Captial
Types of capital; social, working, fixed and private
Return/payment= interest
MEC
Enterprise
Return/payment = profit or loss
differs from other FOP; can earn loss, returns can vary, return is residual
Past Papers & Marking Scheme
https://www.studyclix.ie/subjects/leaving-certificate/higher/economics/costs-of-production-labour
Mobility of Labour
Geographical Mobility
Occupational mobility
MPP
Factors influencing MPP
quality/specialised nature of the factors, training provided for staff, expertise of the entrepreneur, law of dmisninshing marginal returns.
Efficiency of Labour: factors affecting
amount of training, management expertise, level of education, innate talent, quantity of the other factors available, living conditions of the work force, climatic conditions, degree of specialization.
Wages
Why do different workers get different wages
different skills, length of training, educational qualifications, nature and conditional of the job, possession of innate talent, traditional of certain jobs, non-monetary benefits
Equilibrium Wage Legislation
Disadvantages of increasing min wage
Advantages of increasing min wage
Minimum Wage Legislation
MRP
Labour Hoarding
Shape of MRP curve
Law of diminishing Returns
The law of Demand
Factors influencing MRP; productivity, selling price, law of demand.
Calculating MRP; contribution made by capital or labour, services sold on the market.
Supply for Labour
Factors effect - size of population, wage levels in the economy, participation rate, levels of income tax, number of hours worked, labour mobility.
Labour supply
curve
Restricting entery into a profession, trade unions and wage rate, wage drift, ratchet economy.
Demand for Labour
wage rate, demand for firms output, price of other FOP, government incentives, availability of new technology, taxation levels, state subsidies, entrepreneurs' expectations.