2.7 The Labour Market

• What is the demand for labour influenced by?

  Employers wanting to hire
• Higher wages tend to increase the supply of labour
• Non-wage benefits can affect the willingness of workers to supply their labor.


  True
• Which government policies can affect the demand for labor?

  Taxes and regulations
• How does strong economic growth affect the demand for labor?

  Increases the demand
• Non-wage benefits like healthcare and retirement shift the labor supply curve to the right
• Technological advancements that boost worker productivity shift the labor demand curve to the left
• Government policies like minimum wage can decrease labor demand and shift the curve to the left


  True
• The demand for labor is affected by economic conditions, technology, worker productivity, and government policies

  True
• The demand for labor is influenced by economic conditions, technology, worker productivity, and government policies


  True
• An increase in minimum wage in California shifts the labor supply curve to the right

  True
• In the example provided, what happens to the equilibrium wage and employment when demand increases?

  Wage rises to $22, employment increases
• Unemployment refers to people who are willing and able to work but cannot find jobs
• What type of unemployment is caused by fluctuations in the business cycle?

  Cyclical unemployment
• How does a larger population affect the supply of labour?

  Increases the supply
• What is the effect of strong economic conditions on the demand for labour?

  Increases the demand
• Technological advancements that boost worker productivity can reduce the demand for labour
• Advances in technology that boost worker productivity can reduce the demand for labor


  True
• Market equilibrium in the labor market occurs when the quantity of labor supplied equals the quantity of labor demanded


  True
• In a town, the equilibrium wage for construction workers is \$20 per hour, employing 200 workers. If demand increases, the wage rises to \$22
• What is one reason for the wage difference between a software engineer in Silicon Valley and Kansas City?

  Higher cost of living
• What type of unemployment is caused by economic recessions?

  Cyclical unemployment
• Trade unions can influence labor supply by controlling entry into certain occupations
• What is the labour market?

  Interaction of supply and demand
• An aging population can increase the supply of labor.

  False
• Match the factor affecting labor supply with its effect:

  Population size and demographics ↔️ Increases or decreases workforce

  Wage levels ↔️ Increases willingness to work

  Education and training ↔️ Increases qualified workers
• What is the effect of technological advancements on the demand for labor?

  Reduces the demand
• Match the factors affecting supply and demand for labor:

  Population size and demographics ↔️ Economic conditions

  Wage levels ↔️ Technology

  Education and training ↔️ Productivity of workers

  Non-wage benefits ↔️ Government policies
• Higher worker productivity increases the demand for labour
• More education and training increases the supply of labor and shifts the curve to the right

  True
• The demand curve for labor shows the number of workers employers are willing to hire at different wage levels


  True
• The labor market involves the interaction of supply and demand
• An aging population decreases the supply of labor
• How do immigration policies in Canada affect the supply of labor?

  Increase it
• What effect does a recession have on the demand for labor?

  Shifts it to the left
• What is the equilibrium wage in the labor market?

  Wage where supply equals demand
• What is the equilibrium wage in the labour market?

  Wage where supply meets demand
• Match the factor influencing wages with its explanation:

  Skill Level ↔️ High-skilled workers earn more

  Experience ↔️ Experienced workers earn more

  Location ↔️ Wages vary by region
• Frictional unemployment is a natural and temporary part of the job market.

  True
• The labour market involves the interaction of supply and demand for labour