GCSE Economics Revision: Demand for labour (With Mock Questions!)
Hey there! 😊 Ready to smash your GCSE Economics exam? Today, we're going to tackle a super important topic – Demand for Labour. Let's break it down in a way that’s simple, clear, and gets you prepped to ace those questions!
What Is Demand for Labour?
The demand for labour is basically how much workers or employees businesses want at different wage rates. It’s influenced by things like the price of goods they’re selling, the productivity of workers, and even technology that can either replace or enhance workers' abilities. Remember, businesses want to hire people as long as the value of the work being done is higher than the wage being paid! 📈
Key Learning Items:
Here are the most important things you need to understand about the demand for labour:
🎯 Marginal Productivity of Labour: This is the extra output or benefit a business gets from hiring one more worker. If hiring another person adds more to the company's profits, they'll keep hiring! 💼
🎯 Wage Rate: Businesses are willing to hire more people when wages are lower. When wages rise, the demand for workers usually goes down.
🎯 Technology and Automation: Technology can replace some jobs, reducing the demand for certain types of labour. But it can also create new jobs by improving productivity!
🎯 Derived Demand: This means that the demand for labour depends on the demand for the goods and services that workers help produce. If there's more demand for cars, car manufacturers will need more workers!
What You Need to Show in the Exam
To nail this section in your GCSE exam, you need to be able to:
💡 Understand and explain factors that influence the demand for labour, such as wages, technology, and the output of the firm.
💡 Interpret and explain diagrams showing the demand for labour curves. You might need to explain what happens to demand when wages change or when there's a technological shift.
💡 Be confident in applying economic theory to real-world examples – think about how businesses like Amazon or a local restaurant might be affected by changes in demand for workers.
Things to Remember Before the Exam!
🔥 Practice makes perfect – work through diagrams, understand why curves shift, and get comfortable explaining them.
🔥 Know your key terms – like marginal productivity, derived demand, wage elasticity, and automation.
🔥 Use examples – when answering questions, think of real-world situations where you've seen labour demand change.
🔥 Stay calm – in the exam, take your time to think through the factors that influence labour demand. If you get stuck, remember the basic idea: businesses hire people when it benefits them to do so.
Test Yourself! 📝
Now, let’s see how you’re doing with these mock questions. Give them a try and see how well you can apply what you've learned!
Q1 - What does 'derived demand' for labour mean?
a) The demand for workers is derived from the demand for wages.
b) The demand for workers is derived from the supply of workers.
c) The demand for workers is based on the demand for the products or services they produce.
d) The demand for workers comes from technological advancements.
Q2 - Which of the following is most likely to increase the demand for labour in a factory?
a) A rise in wage rates
b) An increase in productivity of workers
c) A new machine that replaces workers
d) A fall in the demand for the product the factory makes
Q3 - What is the relationship between wage rates and the quantity of labour demanded?
a) When wage rates increase, the quantity of labour demanded increases.
b) When wage rates increase, the quantity of labour demanded decreases.
c) There is no relationship between wage rates and the quantity of labour demanded.
d) Wage rates only affect the supply of labour, not the demand.
Q4 - If a firm experiences a higher demand for its product, what is most likely to happen to its demand for labour?
a) The demand for labour will decrease.
b) The demand for labour will stay the same.
c) The demand for labour will increase.
d) The firm will reduce wages to hire more workers.
Q5 - Which factor is least likely to influence a firm’s demand for labour?
a) The productivity of its workers
b) The technology available to the firm
c) The price of the goods or services it produces
d) The personal preferences of its workers
To check your answers and see more questions check out our GCSE Economics Multiple-Choice booklet, with 250 sample questions and answers for you to revise
Great work! 🎉 Keep practicing, stay positive, and you’ll be ready to ace your exam. If you have any questions or get stuck, don’t hesitate to ask. You've got this! 💪