Question

Write answers for the following!
1. What are various sectors in Market activities? Give examples.
2. What are the two factors required for earning money through labour?

Answer 1

Answer:

1.Primary sector – extraction of raw materials – mining, fishing and agriculture. Secondary / manufacturing sector – concerned with producing finished goods, e.g. Construction sector, manufacturing and utilities, e.g. electricity

2 .Two factors that influence a workers supply of labour

• Two factors that influence a workers supply of labourSubstitution effect of a rise in wages. ...

• Two factors that influence a workers supply of labourSubstitution effect of a rise in wages. ... Income effect of a rise in wages. ...

• Two factors that influence a workers supply of labourSubstitution effect of a rise in wages. ... Income effect of a rise in wages. ... The number of qualified people. ...

• Two factors that influence a workers supply of labourSubstitution effect of a rise in wages. ... Income effect of a rise in wages. ... The number of qualified people. ... Difficulty of getting qualifications. ...

• Two factors that influence a workers supply of labourSubstitution effect of a rise in wages. ... Income effect of a rise in wages. ... The number of qualified people. ... Difficulty of getting qualifications. ... The non-wage benefits of a job. ...

• Two factors that influence a workers supply of labourSubstitution effect of a rise in wages. ... Income effect of a rise in wages. ... The number of qualified people. ... Difficulty of getting qualifications. ... The non-wage benefits of a job. ... The wages and conditions of other jobs. ...

• Two factors that influence a workers supply of labourSubstitution effect of a rise in wages. ... Income effect of a rise in wages. ... The number of qualified people. ... Difficulty of getting qualifications. ... The non-wage benefits of a job. ... The wages and conditions of other jobs. ... Demographic changes and immigration.

Answer 2

Explanation:

1. What are various sectors in Market activities? Give examples.

Ans - Primary sector – extraction of raw materials – mining, fishing and agriculture. Secondary / manufacturing sector – concerned with producing finished goods, e.g. Construction sector, manufacturing and utilities, e.g. electricity.

2. What are the two factors required for earning money through labour?

Ans - Basic economic theory suggests that wages depend on a worker’s marginal revenue product MRP. (this is basically the value that they add to the firm which employs them.)

MRP is determined by two factors:

MPP – Marginal physical product – the productivity of a worker.

MR – Marginal revenue of last good sold – Effectively the price and demand for the good that the worker produces.

More on Marginal Revenue Product and determination of wages

If we take wages for strawberry pickers.The worker who picks much faster and fills his basket of strawberries should get paid a higher salary than a lazy worker who falls asleep. For jobs such as strawberry picking, firms can pay piecemeal and link pay to productivity.