A new technology company opens in Canada. It plans to employ software technicians. (a) What is meant by the price of labour? [1] (b) Which curve shows the q...

(a) The price of labour is the wage rate paid to workers. [1]

(b) The labour-supply curve shows the quantity workers are willing and able to offer at each wage rate. It normally slopes upward because higher wages encourage labour supply. [2]

(c) Equilibrium wage and employment occur where labour demand and supply intersect.

[2]

(d) Demand for technicians shifts right as firms compete for them. Equilibrium wage and employment tend to rise. [2]

(e) Demand shifts from D₁ to D₂; wage rises from W₁ to W₂ and employment rises from Q₁ to Q₂.

[2]

(f) \[120\times35\times\text{C\$}18=\text{C\$}75,600\text{ per week}\] [2]

(g) Any two: higher demand for technology products, higher labour productivity, a fall in employment costs, industry expansion or a higher output price. [2]

(h) Unemployment is when people willing and able to work, and actively seeking work, cannot find jobs. [1]

(i) Any three: lengthy qualification requirements, few experienced workers, geographical immobility, occupational immobility, imperfect information about vacancies, or high education and training costs. [3]

(j) Subsidised training and apprenticeships, STEM education, improved careers information, relocation support and targeted skilled immigration can increase the quantity and quality of labour supply. [3]