3E Economics par. 6.4

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Par. 6.6 assignment 1
Income tax

1. 36.000 x 0,3655
2. 20.142 x 0,3655 + 15.858 x 0,4085
3. 40.000 x 0,3655
4. 20.142 x 0,3655 + 19.858 x 0,4085

Frits is applying for a job at Philips. The demand for labour is ... ?

1. Frits
2. Philips

Labour Market

Supply of labour: Everybody that works or wants to work

( for more than 12 hours a week )

Demand for labour: Companies ( and public sector ) 

Price: wages

Labour Market

Supply of labour > Demand for labour 

means unemployment

leads to a situation with lower wages

Demand for labour > Supply of labour

means tight labour market

leads to a situation with higher wages

Labour market

Collective agreements: employment arrangement for all employees in a certain industry

Financial: f.e. wage

Non financial: f.e. number of days of

Trade Unions negotiate on behalf of employees

Labour market

Trade Unions and employees go for the most favourable CA with high wages

Employers don't want labour costs to be too high

So, tough negotiations

Employees have to be careful with very high goals:

High wages -> high labour costs -> high prices -> less customers ->

-> lower production -> less employees needed -> higher unemployment

( or companies replace employees by machines to avoid high labour costs )

Labour market

Minimum wage:

Protect workers against exploitation

Minimum wage:

Supply of labour increases and Demand for labour decreases

So higher unemployment

Assignment

Puzzle causes differences in income:

 

Assignment

Puzzle causes differences in income:

1j 2d 3f 4a 5i 6e 7g 8c 9h 10b 

Hw.

Par. 6.4 assignments 3 and 18