F583 - Economics of Work and Leisure - June 2014

Thank you. I knew they were the key influences but I didn't know how to elaborate on it lol

Do you mind telling me what diagram should I use to answer this question "Discuss the extent to which the ease of factor of substitution may influence the price elasticity of demand of labour" 20

What is brain drain?

this is simply when the "clever" people of the country pack up and leave. so highly-established business entrepeneurs etc, usually due to reasons such as too high an increase in income tax/corporation tax.

Hmm... Is it important to remember these terms, or can we simply express the idea in some cases?

i.e. it's obvious to point out Hysteresis when explaining its mechanism, but "brain drain" ? Where does it mention that in the book?

I always do 3 well developed points for L3 and evaluate them, so 3 for L4 as well.
the judgement being separate to that, I get about 16/17 out of 20 with this.
hope it helps

I think in the net migration bit. You don't really need to remember the exact definition. This is just for analysis or evaluation.

What exactly is diminishing returns? I can't find it in the textbook, I'm guessing it's something to do with output decreasing?

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What exactly is diminishing returns? I can't find it in the textbook, I'm guessing it's something to do with output decreasing?

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Its to do with how much output increases as you employ an extra unit of labour.
For example in a Cafe, if you have one worker and you employ another your output is likely to increase as you can serve more customers etc.
As you employ a 3rd, 4th, 5th and so on workers your output will keep increasing. But when you get to a certain number of workers your output will start to fall, or will increase at a slower rate. With the cafe example, the workers will start to get in each other's way as the cafe is only a certain size.
Therefore a firm will employ workers up to the point where output begins to diminish as a result of an extra worker.

Hope that helped, there is a diagram to show this I think but i'm not sure what it is.

It's in the marginal revenue product part. Its only mentioned in a few sentences. Ridiculous.

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Does anyone have an essay for this question 'discuss the extent to which marginal revenue product is the main determinant of wages (20)"?

Is that for any topic in particular?


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Are there any leisure market examples of a monopoly?

I don't have an electronic version, but you would just explain how mrp is (by showing a shift in the mpl curve) then explain other factors (elasticity, trade unions etc)

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for that question, i drew a diagram with two ADL (Aggregate Demand for Labour) lines on it, and mentioned how if factor substitution was easy then the elasticity of demand for labour would be more elastic (and referenced the elastic ADL line) and if factor substitution was not easy then a firms elasticity of demand for labour would look like ADL2 instead of ADL1 (ADL2 was my really inelastic ADL line)

got 17/20 for that essay so i know its a correct diagram