Booklet 6 Flashcards
What is it called when someone is unable to afford the basic necessities of life (food, water, shelter, warmth, clothing etc.)?
Absolute poverty
What is a situation where it is more rewarding for someone to rely on transfer payments from the government than to accept paid work (i.e. the lost welfare benefits exceeds the increased pay)?
The benefits trap
What is a situation where all employees are compelled to belong to a trade union as a condition of employment?
A closed shop
What is the process by which an employer and a trade union (or unions) negotiate the pay and conditions of a group of workers?
Collective bargaining
What is the additional pay given to workers in order to encourage them to do jobs that are physically difficult, dangerous or unpleasant (irrespective of the level of skill required)?
Compensating wage differentials
What is labour that is not demanded for it’s own sake, but is instead based entirely on demand for the output that it produces?
Derived demand for labour
What is a numerical measure of inequality in the distribution of income based on the Lorenz curve?
Gini coefficient
What is a flow of money earned or received over time called?
Income
What is time spent purely in enjoyment?
Leisure
What is a graphical illustration of the distribution of income in an economy?
The Lorenz curve
What is the change in total output generated by the employment of an additional unit of a variable factor of production - typically the amount of additional output produced by an extra worker?
Marginal physical product (MPP)
What is the value of the additional output produced by an extra worker. This can be found by multiplying MPP by the price of a unit of output?
Marginal revenue product (MRP)
What is the only buyer in a market?
Monopsony
What are the overall benefits from a particular job (pecuniary benefits + non-pecuniary benefits - disutility of work) called?
Net Advantages
What are the non-financial rewards for work e.g. free on-site gym/childcare?
Non-pecuniary benefits?
What are the financial rewards for work e.g. salary?
Pecuniary benefits
What is a situation where someone born into poverty is more likely to remain in poverty and then have children who are born into poverty so the cycle repeats itself due to a lack of social mobility called?
The poverty cycle
What is it called when someone is poor relative to other people? In the UK this is formally defined as earning less than 60% of median household income.
Relative poverty
What is the total amount of output produced called?
Total physical profit (TPP)
What is a group of workers who come together to protect their interests (usually in terms of pay and conditions) called?
A trade union
What is the term used to describe paying different workers different amounts to complete the same work or do the same job?
Wage discrimination
What is the stock of assets someone has at a given moment in time called?
Wealth
What is time spent in paid employment called?
Work
