[DeeEmSee]

Can anyone give me a quick check list of stuff to go over, Im just making sure I haven't missed out anything - Thanks!

[K.a]

(Original post by gavin27)
Anybody know what the 3 questions were at the end of the jan 2012 paper? I vaguely remember pensions and something to do with the ageing population.

- two forms of bargaining power/if bargaining alone determines wages
- difference between SR and LR equilibrium of monopolistic competition/leisure market of your choice, the extent to which it is monopolistic
- ageing population/reform of state pension system.

[Ryanxclarke]

I was just wondering, on a monopoly diagram the MC curve slopes down and then goes up again.

Is that because of economies of scale initially and then diminishing returns?

[gavin27]

(Original post by K.a)
- two forms of bargaining power/if bargaining alone determines wages
- difference between SR and LR equilibrium of monopolistic competition/leisure market of your choice, the extent to which it is monopolistic
- ageing population/reform of state pension system.

Thankyou! Number 2 looks quite apppealing wouldn't have minded that on monday.

[evelynevelyn]

Ahhh getting a bit nervous now. Going to spend the entirety (almost) of today and tomorrow on Unit 3!


good luck everyone

[evelynevelyn]

(Original post by Ryanxclarke)
I was just wondering, on a monopoly diagram the MC curve slopes down and then goes up again.

Is that because of economies of scale initially and then diminishing returns?

yes, all the short run cost curves follow that pattern, regardless of market structure.

[-Illmatic-]

"Discuss the extent to which govt. intervention can reduce Labour Market Flexibility caused by the immobility of labour" (N.b this is a part two question of the Jan 2010 paper)

As mentioned before, the immobility of labour can significantly distort the workings of the labour market mechanism. Govt. intervention, via a number of measures, can correct this type of market failure. The extent to which govt. intervention is helpful in reducing LMF is debatable.

One thing the govt. can do to solve immbolity is regional policy. Regional policy seeks to correct labour market failure on a regional level. For instance, govt. might seek to correct regional unemployment by providing financial assistance to both firms and workers to locate/relocate. If the govt. incentivises the relocation of a business to an area of unemployment, then there will be a decrease in regional unemployment because of the job creation, and thus a decrease in geographical immobility. Similarly, govt. can provide workers with financial assistance to locate to areas where their skill set is needed, also reducing immobility caused by locational barriers. However, in reality the costs of financially aiding workers and business can be burdening to say the least. Moreover, there isn’t much incentive for firms to locate to an area of relative unemployment such as Merseyside. Firms might statistically discriminate i.e possess false preconceptions about the productivity of workers in Merseyside, further increasing the reluctance to locate to that specific region. Regional unemployment may not be reduced in this case and labour immobility may continue to exist. Therefore, govt. intervention isn’t particularly helpful in solving labour market failure with regards to geographical immobility.

Another policy to correct occupational immobility concerns the flexibility of the labour market force. For instance, if the labour market force is more flexible i.e can adjust quickly and smoothly to changes in demand/supply conditions, this will solve immobility. Govt. can use policies such as education and training to make the labour force more flexible, and in doing so, more mobile.

Providing training reduces the immobility of labour since the workforce becomes more skilled and qualified to undertake tasks required by firms. This in turn leads to labour being more capable of switching smoothly between occupations. Training is a merit good; if left to the free labour market, it’d be under consumed and under produced. Training comes in a number of forms; the govt. can provide training for its employees (the public sector); can subsidise training for firms or the govt. may choose to pass legislation compelling business to ensure workers achieve certain standards of training. Training, like most other measure of intervention, however, can come with a financial cost. Firms are often reluctant to train since they are afraid trained staff will eventually become poached by other firms. Thus govt. intervention can only significantly reduce labour immobility if laws and regulations are passed that compel firms to train their employees. Additionally, if its subsidised by govt. then it’d be highly effective since firms now have an incentive to train their staff.

Education is another policy govt. can pursue to reduce immobility of labour. If govt. provides better education, then the workforce becomes gradually more qualified. This increase in human capital will make it easier for labour to switch between occupations, reducing occupational immobility. One thing to consider, however, is the time lag involved. It is obvious the govt. is able to effectively intervene using this policy, though this measure is best used as a long term plan.

Reducing immobility is entirely possible as a govt. Making sure the labour market is flexible is paramount in achieving utmost mobility. Intervention, however, can only be so helpful. The responsibility lies also with workers and business to become more mobile and to offer better training in pursuit of a labour force that is mobile.

[K.a]

Does anyone have an essay or plan on EU Directives and Immigration (impact on labour markets and economy) ?

[Rads.X]

so anyone got any predictions????

[Lalaa]

(Original post by Rads.X)
so anyone got any predictions????

i think wage differentials, followed by inequality might come up. also maybe section one will be gov intervention ( hints of labour market ) and the last 3 questions, one most probs to do with monopoly ( extent to which its )

[K.a]

(Original post by Lalaa)
i think wage differentials, followed by inequality might come up. also maybe section one will be gov intervention ( hints of labour market ) and the last 3 questions, one most probs to do with monopoly ( extent to which its )

I was thinking the exact same thing, not sure what Section A is going to be though..

[Lalaa]

(Original post by K.a)
I was thinking the exact same thing, not sure what Section A is going to be though..

mmm.. i was thinking gov.. cuz for the last few years its been labour.. jan 12 was gov.. so maybe gov....

r u revsin now? as in.. this moment in time...

[K.a]

Analyse the causes of income inequality. (15)

1. Differences in skills and qualifications
- High level of skills and qualifications (Inelastic) = Higher demand for that labour because they'll have a higher MRP so they can earn higher wages
- Lower level of skills and qualifications (Elastic) = Lower demand for that labour because they are likely to have a lower MRP so they can only work in lower paid jobs. Also because of their lack of qualifications, it is difficult for them to progress into higher-paid jobs.

- Where labour supply is elastic - supply is always likely to be high and demand is likely to be lower so firms offer a low wage.
- Where labour supply is inelastic - supply is likely to be low and demand is likely to be high so firms offer a higher wage.
(Supply and demand diagram)
* Therefore, the difference between skills and qualifications between different groups affects the wage they are likely to get - some being higher and some being lower, hence a cause of income inequality.

2. Lack of education and training/opportunities.
- Further education = A higher level of qualifications and skills so a higher way is achievable.
- As qualifications act as a signal to potential employers of the worker's MRP - those with no or a small amount of qualifications means that firms may only employ workers where MRP is = or > than wage.
- They are only left with a low wage and cannot earn a higher wage that matches the potential of other skilled/qualified workers.
* Therefore, increases the difference between those in high-paid jobs and those in low-paid jobs due to some dropping out of education and others taking it forward - income inequality.

3. Discrimination
- Women
- Ethnic minorities

I have no idea if this is on the right path for answering this question!!
Can someone please tell me if this is right and how I could really improve this?

Thank you!

[Lalaa]

(Original post by K.a)
Analyse the causes of income inequality. (15)

1. Differences in skills and qualifications
- High level of skills and qualifications (Inelastic) = Higher demand for that labour because they'll have a higher MRP so they can earn higher wages
- Lower level of skills and qualifications (Elastic) = Lower demand for that labour because they are likely to have a lower MRP so they can only work in lower paid jobs. Also because of their lack of qualifications, it is difficult for them to progress into higher-paid jobs.

- Where labour supply is elastic - supply is always likely to be high and demand is likely to be lower so firms offer a low wage.
- Where labour supply is inelastic - supply is likely to be low and demand is likely to be high so firms offer a higher wage.
(Supply and demand diagram)
* Therefore, the difference between skills and qualifications between different groups affects the wage they are likely to get - some being higher and some being lower, hence a cause of income inequality.

2. Lack of education and training/opportunities.
- Further education = A higher level of qualifications and skills so a higher way is achievable.
- As qualifications act as a signal to potential employers of the worker's MRP - those with no or a small amount of qualifications means that firms may only employ workers where MRP is = or > than wage.
- They are only left with a low wage and cannot earn a higher wage that matches the potential of other skilled/qualified workers.
* Therefore, increases the difference between those in high-paid jobs and those in low-paid jobs due to some dropping out of education and others taking it forward - income inequality.

3. Discrimination
- Women
- Ethnic minorities

I have no idea if this is on the right path for answering this question!!
Can someone please tell me if this is right and how I could really improve this?

Thank you!

mmmm.. personally i wouldnt add discrimination cuz theres is not much you can talk about, maybe do points on hours worked and composition of household

also start by defining income and maybe income inequality.. ( i dont know how youd define income inequality.. defining easy marks.... =)


also to add: mmmm.. maybe look at the 3 different types of income.. ie : functional , size and regional, and look at individuals the causes of each.. whats youv written is mainly households... just a thought !

[Lalaa]

are there any diagrams in ' income' or inequality' or 'wealth'?

[Rads.X]

how is everyone revising? and has any one got the jan 12 markscheme they can upload

[K.a]

Evaluate the implications of different market structures for resource allocation.

Discuss the relationship between efficiency and market structures.

Isn't resource allocation and efficiency similar so both will have the same answers, in terms of their price and output?

[K.a]

(Original post by Lalaa)
mmmm.. personally i wouldnt add discrimination cuz theres is not much you can talk about, maybe do points on hours worked and composition of household

also start by defining income and maybe income inequality.. ( i dont know how youd define income inequality.. defining easy marks.... =)


also to add: mmmm.. maybe look at the 3 different types of income.. ie : functional , size and regional, and look at individuals the causes of each.. whats youv written is mainly households... just a thought !

Ohh okay.. Thank you for that!

So functional in terms of skills/qualifications and geographical in terms of unemployment, for instance?

[Lalaa]

(Original post by K.a)
Ohh okay.. Thank you for that!

So functional in terms of skills/qualifications and geographical in terms of unemployment, for instance?

mmmm.. functional as in .. Factors of production and their rewards, skills and quals would be household income.. and yepp.. geographical.. as unemployment... =)

btw.. it could be possible wealth come up in the same context as your question above ^

[Lalaa]

anyone got any other forms of non marketable wealth other than pension rights?