Chapter 1 Flashcards
1
Q
is the economic analysis of how workers, firms and the government interact in shaping the outcomes in the labor market, primarily employment and earnings.
A
Labor economics
2
Q
Who said the quote Without labor nothing prospers.
A
-Sopocles
3
Q
is the work time and work effort that people devote to producing goods and services.
A
- Labor
4
Q
- This includes the physical and mental efforts of all the people who work on farms and construction sites and in factories, shops, offices, etc
A
Labor
5
Q
According to whom “Labor connotes all human efforts of body or mind which are undertaken in the expectation of reward.”
A
S.E. Thomas
6
Q
- In macro level, labor refers to what?
A
the employed individuals in the labor force.
7
Q
8 characteristics of Labor
A
- Labor is a human effort.
- Labor is an active resource.
- Labor is perishable.
- Labor is inseparable to from the Laborer
- Labor is heterogenous
- Labor has low bargaining power
- Labor is less immobile
- Supply of labor is relatively inelastic
8
Q
- The study of making choices
A
Economics
9
Q
- The study of scarcity
A
Economics
10
Q
- The study of resource allocation
A
Economics
11
Q
- The study of production and consumption
A
Economics
12
Q
is concerned with the behavior of individual entities such as markets, firms, and households, and governments.
A
- Microeconomics
13
Q
- This answers how labor markets work and how workers (household), employers (firms) and government make decisions
A
Microeconomics
14
Q
looks into the behavior of the performance of the economy as a whole.
A
- Macroeconomics
15
Q
- This studies macroeconomic variables such as employment, unemployment, growth, and inequality that may affect the overall performance of the economy.
A
Macroeconomics
16
Q
Micro Or Macro
1. The unemployment rate of the country raised by 3%.
A
Macroeconomics
17
Q
- A worker’s decision to choose between two offered jobs - job A or job B.
A
Microeconomics
18
Q
- The determinants why do some people earn more than others
A
Microeconomics
19
Q
- Because of reduced demand, a cellphone company temporarily closes one of its factories and lays off workers.
A
Microeconomics
20
Q
- Government extends tax subsidies to encourage firms to increase their employment.
A
Macroeconomics
21
Q
is a visual model that depicts how money, goods, and services flow through markets between households and firms in the economy.
A
circular flow of income
22
Q
functions through the interaction of workers and employers.
A
labor market
23
Q
is like other markets in that a commodity (labor services) is bought and sold. *Although it differs from most product markets in several important ways.
A
labor market
24
Q
CHARACTERISTICS OF A LABOR MARKET
A
- Labor is a resource supplied by workers and demanded by firms in exchange for a wage.
- The wage rate is determined in the labor market.
- The suppliers of labor care about how the labor is used.
- Labor is heterogeneous (skills, talents, etc. vary), unlike goods that cannot be standardized.
- Individual skill levels may improve over time due to human capital investment.
- There is a contractual relationship between employers and workers.
- Labor productivity is affected by pay and working conditions.
- Equity is considered necessary since the worker is not a product.
- There is the mobility of workers within and across such markets and within and across their employers.
- There are a variety of labor markets (occupations, locations, etc.).
25
OBJECTIVES OF THE LABOR MARKET
Efficiency, Equity, Growth, Social Justice
26
To achieve maximum output, minimum amount of waste, labor productivity and specialization (division of labor).
Efficiency
27
Implying equal opportunity for all to access to jobs, training, treatment at work and payment.
EQUITY
28
Higher productivity and
incomes, full employment.
Growth
29
The members must
have some sort of involvement within the community
SOCIAL JUSTICE
30
The market for high-paying jobs.
PRIMARY LABOR MARKET
30
CATEGORIES OF THE LABOR MARKET
1. PRIMARY VS. SECONDARY
2. UNSKILLED, SEMI SKILLED, SKILLED, PROFESSIONAL
3. AGRICULTURE, INDUSTRY, SERVICE
4. NATIONAL AND INTERNATIONAL
31
. It is characterized by good job roles, company status, and job security, as well as clean and safe working conditions and the high potential for promotion.
PRIMARY LABOR MARKET
32
The market for low-status jobs
SECONDARY LABOR MARKET
33
. It is characterized by low-to-minimum wage, poor working conditions, poor job security and little opportunity for promotion.
SECONDARY LABOR MARKET
34
The market for workers who possess no particular skills and likely have a lower educational attainment
UNSKILLED LABOR MARKET
35
The market for workers which does not require advanced training or specialized skills, but it does require more skills than an unskilled labor job.
SEMI-SKILLED LABOR MARKET
36
The market for workers who have to perform the specialized training or a learned skill-set to perform the work.
SKILLED LABOR MARKET
37
The market for workers who possess a higher degree of skills.
PROFESSIONAL LABOR MARKET
38
All the workers involved and covered in the agricultural sector of the economy.
AGRICULTURAL
39
All the jobs/occupations covered in the industrial sector of the economy.
INDUSTRIAL
40
All the jobs/occupations covered in the tertiary sector of the economy
SERVICE
41
The market for domestic jobs.
NATIONAL LABOR MARKET
42
The market for foreign jobs.
INTERNATIONAL LABOR MARKET
43
The actor of the labor market who supplies labor service for payoff.
WORKERS
44
look for the best job.
WORKERS
45
The actor who demands for labor services and decides who to hire and fire.
FIRMS
46
aim and look for profits
Firms
47
The actor who regulates the “rules of the game” in the labor market
GOVERNMENT
48
Government uses regulation to achieve goals of public policy.
GOVERNMENT
49
is a simplified representation of a theory
model
50
It is a mathematical or graphical representation of a theory that highlights the key relationships between variables
model
51
Model is describe by whom as a simplified representation of a real situation that is used to better understand real-life situations.
Krugman
52
Investigates the relationship between a dependent variable (what you want to predict or understand) and one or more independent variables (factors that might influence the dependent variable).
LINEAR REGRESSION MODEL
53
is the variable representing the value being predicted or changed.
Independent Variable
54
observed result of the independent variable being predicted.
Dependent Variable
55
HOW TO PERFORM REGRESSION ANALYSIS?
1. Data Collection
2. Model Fitting
3. Evaluating the Model
56
Gather data on the dependent and independent variables.
Data Collection
57
An analysis finds the best line or curve that fits the pattern of your data. This "line of best fit" represents the mathematical relationship.
Model Fitting
58
Assess the model's goodness-of-fit using metrics like R-squared (how well the data fits the model), pvalues (statistical significance of relationships), and residuals (errors).
Evaluating the Model
59
Predict sales based on advertising, pricing, seasonality.
Sales Forecasting.
60
Forecast stock prices based on economic indicators
Stock Market Analysis.
61
Evaluate loan-default risk based on borrower characteristics.
Risk Assessment.
62
Optimize production processes.
Manufacturing.
63
assumes linearity, normality, independence of errors, and equal variance
Simple linear regression
64
For every one-unit change in the independent variable (X), the dependent variable (Y) is expected to change by the value of the slope coefficient.
Slope (β1).
65
The expected value of the dependent variable (Y) when the independent variable (X) is zero.
Intercept (β0).
66
A measure of how well the line fits the data. Ranges from 0 to 1, with higher values indicating a better fit.
R-squared.
