Question 1: Market analysis: demand, supply, equilibrium Read the following extract and answer the subsequent questions; each question worth 10%: www.zawya.com/story/ZAWYA20120313083150/ a) Use a supply-and-demand diagram to describe the labour market for university graduates, explaining the upward or downward slope of the demand and supply curves in your diagram. Assuming that one type of graduate is demanded by all employers, show how the market equilibrium wage for graduates is determined. b) Evaluate how, if a large number of new graduates enter the labour market, each earning the existing graduate wage, unemployment might arise among new graduates. c) Explain how promoting labour- intensive enterprises might help to relieve a problem of graduate unemployment. In your answer refer to the Business Today Egypt article. d) Using relevant graphical representation, assess why private-sector employers might not be willing to finance the training of people they recruit without some financial contribution from the government or from the employees themselves. e) Should the government intervene in the labour market to eliminate unemployment? Discuss.  |
