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F583 - Economics of Work and Leisure - June 2014

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Quick question - how would you show the effect of an increase in productivity levels on unit labour costs (diagram wise)? I'm doing one of the 15 markers from June 2011 - "Analyse how changes in productivity levels impact on unit labour costs" and can't decide on a diagram to use. I'm thinking a fall in AC and MC, which would then result in a new equilibrium at MC = MR, with lower price and higher quantity. But that doesn't really show unit labour costs falling from a productivity increase - it shows the effect of unit labour costs falling.

Is there even a diagram for what I'm asking?

don' think there is a diagram - if there is i haven't seen it :/ thing is, that's the type of question that i would try and avoid at all costs personally, it's just so narrow and like you say, there's no diagram for it.

Reply 361

dlm19

Can someone please explain MRP and how it is relevant to employment etc? We were never taught it properly! :frown:

Reply 362

megzthorn

MRP is the change to a firm's revenue due to employing one more worker. Therefore if workers are seen to have high MRP then this will make them more desirable to hire by firms. Thus this should lead to increase in employment levels. However it is usually the case that older workers have higher MRP than younger workers due to their past work experience and previous qualifications etc. which may mean that employment opportunities are only available for workers of an older age therefore may result in an increase in youth unemployment, depending on the nature/behaviour of the firm and the extent to which young employees lack experiences and training etc.

I think that is right to some extent!

Reply 363

MTennison

Original post by dlm19

Can someone please explain MRP and how it is relevant to employment etc? We were never taught it properly! :frown:

In a perfect labour market (i.e. no failures), MRP should be equal to your wage. Profit Maximising firms will hire up until the point of MRP = MC (i.e. when the products produced by a unit of labour equals its cost) - Q in the diagram. If MC > MRP, then the firm will lose money with hiring extra staff, and if MC < MRP, the firm will make abnormal profit.

mrp_mc_eq.gif3.8KB

Reply 364

Waloo

How long should 15/20 markers be roughly?

Reply 365

tsimms

Original post by Waloo

How long should 15/20 markers be roughly?

Depends on the question...

For the 15 markers you can attain up to 8 marks just by correctly drawing a diagram. That shows for a question of that nature written analysis wouldn't need to be too substantial...

Reply 366

Rheannan

anyone know what the june 2013 15/20 markers were? and if discuss the extent to which a leisure market of your choice is one of the market structures was on there?

Reply 367

I_Need_Help_now

anyone got any ideas on what will come up tomorrow based on previous papers etc?

Reply 368

May-o2q

Could anyone please explain me in detail about what is NAIRU? I can't never understand this concept! :frown:

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Reply 369

feeltofollow

what textbook is everyone using for their information/revision? and also how much detail is it recommended to know the examples of leisure markets in? i'm pretty weak with the examples

Reply 370

Pokims1996

Original post by Rheannan

anyone know what the june 2013 15/20 markers were? and if discuss the extent to which a leisure market of your choice is one of the market structures was on there?

Here you are

http://sccecon.weebly.com/uploads/1/9/0/9/19091357/f583_ms_june13.pdf

Reply 371

Waloo

Original post by tsimms

My dream paper tomorrow...

Section A

Case study on the cinema industry and oligopolies.

Section B

(a) Analyse, using a diagram, the behaviour of a monopsony. [15]

(b) Discuss the extent to which a monopsony is the main determinant of wages. [20]

how would you answer part b?

Reply 372

Mrgp

for a question regarding whether a leisure market of your choice is an oligopoly? would you draw the kinked demand graph? (is it a bit irrelevant?). i know you could draw the monopolistic competition graph as an alternative to a oligopoly.

Reply 373

Mrgp

also for a economies of scale or factors of elasticity of supply for labour and elasticity of demand for labour what graphs would you draw?

Reply 374

Pokims1996

Original post by Mrgp

also for a economies of scale or factors of elasticity of supply for labour and elasticity of demand for labour what graphs would you draw?

For economies of scale you can draw a U shaped LRAC curve.
For the elasticity of demand/supply, you can just draw inelastic/elastic demand and supply curves.

Reply 375

May-o2q

Do we need to learn the theory of discrimination?

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Reply 376

nitin0896

Original post by May-o2q

Do we need to learn the theory of discrimination?

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I strongly feel that it might come up as an 8 marker just before the 15/20, so would advice you to know about beckers theory and statistical.

Reply 377

ruthlessv

Haha what a bull**** subject, ****ing retards

Reply 378

ndawgy

In a competitive market, why is the supply of labour curve perfectly elastic i.e. flat?

Reply 379

nitin0896

Original post by May-o2q

Could anyone please explain me in detail about what is NAIRU? I can't never understand this concept! :frown:

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If they ask then...

NAIRU - Non-accelerating inflation rate of unemployment.
In the diagram the LF should actually be ALF (Aggregate labour force) and ASL is the aggregate supply of labour. NAIRU is also know as equilibrium unemployment (whereas disequilibrium unemployment is cyclical where there is a lack of AD). As the wage rate rises, the gap between the ASL and ALF narrows because more people are willing to work at a high wage rate.
NAIRU is basically consistent with the level of unemployment at which there is no upward pressure of the wage rate and inflation (non acceleration inflation rate of unemp, get it?)

Make sure you know about eq. and diseq. unemployment because it can come up as a 15 marker, or atleast im hoping it will.

Also equilibrium unemployment is unemployment that exists when the labour market is in equilibrium (so im guessing it suggests that its not too harmful)