Understanding the UK Housing Market: Supply and Demand Analysis

The video tutorial covers the concept of labour demand, explaining its derived nature and the factors influencing it. It discusses the short-run and long-run perspectives, the role of productivity, and the graphical representation of labour demand. The marginal revenue product is introduced, showing its impact on hiring decisions. The tutorial also explores the labour demand curve, factors causing shifts, and wage elasticity of demand, concluding with a recap of key points.

Why is labour demand considered a derived demand?

• Because it is directly related to the number of workers available.

• Because it depends on the demand for the goods and services produced.

• Because it is determined by government policies.

• Because it is influenced by the wage rate.

What happens to worker productivity as more workers are added in the short run?

• Productivity decreases due to diminishing returns.

• Productivity increases indefinitely.

• Productivity increases at a decreasing rate.

• Productivity remains constant.

What does the marginal revenue product curve represent?

• The financial benefit of adding one more worker.

• The total number of workers employed.

• The total cost of hiring workers.

• The average productivity of all workers.

How does a decrease in the wage rate affect the labour demand curve?

• It causes movement along the curve, decreasing labour demand.

• It causes the curve to shift to the left.

• It causes the curve to shift to the right.

• It causes movement along the curve, increasing labour demand.

What is a labour submarket?

• A market that includes all types of labour.

• A market for a specific type of skilled labour.

• A market where labour is considered homogeneous.

• A market where only one type of labour is demanded.

Which factor can cause an outward shift in the labour demand curve?

• Decreased consumer demand for the product.

• Increased labour productivity.

• Higher capital productivity.

• Increased employment taxes.

What does an inelastic wage elasticity of demand indicate?

• A constant change in labour demand regardless of wage rate.

• No change in labour demand with a change in wage rate.

• A large change in labour demand with a change in wage rate.

• A small change in labour demand with a change in wage rate.

How does foreign competition affect the labour demand curve?

• It causes an inward shift in the curve.

• It causes an outward shift in the curve.

• It has no effect on the curve.

• It causes the curve to become steeper.

What is the impact of government employment subsidies on labour demand?

• They decrease the demand for labour.

• They have no impact on labour demand.

• They make labour demand more elastic.

• They increase the demand for labour.

What determines the wage elasticity of demand in a labour market?

• The price elasticity of the final product.

• The level of government intervention.

• The number of workers available.

• The average wage rate in the market.