Activity 1:
1.​ Firms hire workers because they need them to make goods and provide services.
2.​ Firms would not hire workers if no one bought their products or services because
they would not earn any money.
Activity 2:
1.​ When consumer demand increases, more workers are needed, so more people get
jobs.
2.​ When consumer demand decreases, fewer workers are needed, so some people
lose their jobs or earn a lower pay.
3.​ This concept is called derived demand, which means the demand for workers
depends on the demand for goods and services.
Activity 3:
1.​ Fast food worker (18 years old), Farmer, IT worker (female), Government school
teacher, Miner, Banker, Surgeon (45 years old)
2.​ -Wages are different because some jobs require more education and skills than
others.
-Wages are also different because some jobs are riskier or have more responsibility.
Activity 4:
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Round 1: When there are many workers and few jobs, wages go down.
​
Round 2: When there are few workers and many jobs, wages go up.
​
Round 3: When workers do not have the right skills, unemployment increases.​
Conclusion: The wage level in the labour market is determined by the demand for and
supply of workers.
Activity 5:
1.​ Demand for labour is derived because workers are only needed if people want the
goods and services they help to produce.
2.​ One factor that explains differences in earnings is the level of education and skills.
3.​ When demand and supply of labour change, wages and the number of jobs also
change.