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Cambridge AS & A Level Economics

8.3Labour market forces and government intervention

Labour market forces and government intervention in Cambridge AS & A Level Economics: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic112 practice questions5 lessons

Learning objectives

What the syllabus expects you to be able to do.

  1. 8.3.1Explain the demand for labour as a derived demand.
  2. 8.3.2Explain the factors affecting the demand for labour in a firm or an occupation.
  3. 8.3.3Explain shifts in and movements along the demand curve for labour.
  4. 8.3.4Define and calculate marginal revenue product and derive a firm's demand for labour from it.
  5. 8.3.5Explain the wage and non-wage factors affecting the supply of labour.
  6. 8.3.6Explain shifts in and movements along the supply curve of labour.
  7. 8.3.7Explain wage determination in perfect markets: equilibrium wage and employment.
  8. 8.3.8Explain wage determination in imperfect markets: trade unions, a national minimum wage and monopsony.
  9. 8.3.9Explain how labour market forces determine wage differentials.
  10. 8.3.10Define transfer earnings and economic rent and explain the factors affecting them.

Lessons

  • Economic rent, transfer earnings and quasi-rent

    50 min

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  • How wages are determined: competitive markets, unions, minimum wages and monopsony

    55 min

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  • The demand for labour and marginal revenue product theory

    55 min

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  • The supply of labour: to a firm, to an occupation and to the economy

    50 min

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  • Wage differentials: why different jobs pay different wages

    55 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Labour market forces and government intervention: sample question

1 mark

If the supply of a factor is perfectly inelastic, its earnings are

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Turn Labour market forces and government intervention into a strength.

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