Edexcel IGCSE Economics 1.2.5 the labour market
Use this labour-market set to draw supply or demand shifts, explain derived demand and evaluate trade union effects in context.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Use labour market diagrams to show supply shifts and new wage or employment levels.
- Explain derived demand for labour from product demand, technology or productivity.
- Evaluate trade union effects on wages, jobs and working conditions in data contexts.
Covered syllabus points
1.2.5 The labour market question 1
When a firm increased its prices, many consumers stopped buying its products.
As a result of changes in consumer tastes, the demand for furniture made of wood is expected to increase by about 5% in the next five years. Woodcutters are employed to cut down trees to produce the wood required to make furniture.
With reference to the data above and your knowledge of economics, analyse how an increase in demand for furniture made of wood may affect the demand for woodcutters.
1.2.5 The labour market question 2
In 2015, the school-leaving age in England was raised from 16 to 18.
Explain one possible effect on the supply of labour of the school-leaving age being raised.
Bupa is an international firm that provides healthcare products to 32 million customers in 190 countries. The initial purpose of the firm was to provide health insurance. It has grown by offering a wider range of services. These include retirement homes for the elderly, eye care, hospital treatment, dental work and travel insurance.
1.2.5 The labour market question 3
Figure 5 shows the labour market for a country.
Using the diagram below, draw the effect of a decrease in the school-leaving age on the labour market in this country. Label the new curve, the new equilibrium wage rate and the new quantity of workers.
Figure 5
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