Chapter 7 Flashcards
Most important and largest in almost all economies with the gross national earnings
Labor
Operates by supplying a skill or talent that someone else would need or demand
Labor Markets
Roles in the labor market are determined by the one who ?, or ? and ?
The one who supplies the labor
The seller of the labor
The one who buys the labor
Link between the price of a product and the quantity demanded for it
Demand
The input to a factor of production
Labor
Exist with the invisible hand at work, the forces of supply and demand
Labor markets
The idea about decision-makers on how much more income is expected for additional labor employed
Value of the marginal product of labor
Gives us the relationship of the inputs in terms of the poor and the amount of product obtained
The production function
The more labor the production function shows that it increases at a fast rate at the beginning, and moves slowly, flatter, toward the right most part of the graph
Diminishing marginal productivity
Is the link between the price of a product and the quantity supplied for it
Supply
All other things remain constant
Ceteris paribus
Individuals would be choosing not to work when they value leisure more than the weight rate that they would be receiving from working
Reservation wage theory
Minimum rate that a worker is willing to accept for a specific job at a given period of time, considering there is no change in an individual’s, overall wealth, marital status, length of an employment, health, and security and disability issues
Reservation wage
The demand for labor is ? And the supply is ?
Downward sloping
Upward sloping
The point where demand for labor, and the supply are met
Equilibrium wage and quantity
Is the profit, maximizing level of individual employer, also known as ______(MRC)
- Wage rate
- Marginal resources cost
As an employee invest his or her time, labor services, ideas, skills, knowledge, and abilities. Every employer must fairly compensate these with a reasonable wage that is (2)_________with the same employee, contributing the same resources in the market.
- Individual earnings and wages
- At par or even higher
If the demand for exerting, good or service is booming, more of it is produced, and offered in the market, and ultimately increases wages
Derived demand
There are some businesses that provide high wages to their employees compared to the market equilibrium to motivate them to work, and not leave the company
Efficiency wages
Price floor that ensures employees receive this amount or more and employers are prevented from paying below this amount
Minimum wage
Reveals who have special skills or who have had long training
Skilled workers
When people move between countries, and become part of the labor market of that country
Immigration
When is the race or nationality is undermined and is given less respect
Wage discrimination
Wage discrimination Happens when there is ?
Monopsony
Only one buyer of the labor offered it can clearly be distinguished who is favored and who is less discriminated against, and an ostensible varied price elasticity of labor supply in different groups
Monopsony
Indicates the average well-being of people in the country in a given period of time
Human development index
Average life of the people in the country, according to various demographic factors
Life expectancy
Average year of schooling of adults and children
Knowledge
GDP per capita plus all income by citizens, derived abroad for investments and foreign aid received
Standard of living
