Specification Content

Page 1

The Demand for Labour and The Marginal Productivity Theory

The demand for a factor (labour) is derived from the demand for the product

The marginal productivity theory of the demand for labour

The demand curve for labour shows the relationship between the wage rate and number of workers employed

The causes of shifts in the demand curve for labour

The determinants of the elasticity of demand for labour

Page 2

Influences Upon The Supply of Labour to Different Markets

The supply of labour to a particular occupation is influenced by monetary and non-monetary considerations

Non-monetary considerations include job satisfaction, dissatisfaction and working conditions

The supply curve for labour shows the relationship between the wage rate and number of workers willing to work in an occupation

The causes of shifts in the market supply curve for labour

Understand the determinants of an individual's supply of labour or the backward-bending supply surve

Page 3

The Determination of Relative Wage Rates and Levels of Employment in Perfectly Competitive Labour Markets

The economists' model of wage determination in a perfectly competitive labour market

Role of market forces in determining relative wage rates

All real-world markets are imperfectly competitive to a greater or lesser extent

Page 4

The Determination of Relative Wage Rates and Levels of Employment in Imperfectly Competitive Labour Markets

How various factors such as monopsony power, trade unions and imperfect information contribute to imperfections in a labour market

How, in a monopsony labour market, the employer can use market power to reduce both the relative wage rate and the level of employment below those that would exist in a perfectly competitive labour market

The use of related diagrams is expected

Page 5

The Influence of Trade Unions in Determining Wages and Level of Employment

The various factors that affect the ability of trade unions to influence wages and levels of employment in different labour markets

How wages and employment are likely to be affected by the introduction of a trade union into a previously perfectly competitive labour market and into a monopsony labour market

The use of related diagrams is expected

Page 6

The National Minimum Wage

The effects of a national minimum wage upon labour markets

Advantages and disadvantages of a national minimum wage

Page 7

Discrimination in the Labour Market

The conditions necessary for wage discrimination

The impact of gender, ethnicity and other forms of discrimination on wages, levels and types of employment

Real-world examples should be used to illustrate wage discrimination

Assess the advantages and disadvantages of wage discrimination for workers, employers and the economy as a whole