Definitions

Question 1

Trade off

Answer 1

Relationship between work and leisure

Question 2

Maintance activites

Answer 2

Things done which are neither for pleasure nor work purposes e.g personal hygiene

Question 3

Net advtages

Answer 3

Overall benefits from a particular job

Net advantages = pecuniary benefits + non pecuniary benefits - disutility

Question 4

Non pecuniary benefits

Answer 4

Non financial rewards for work e.g fringe benefits or free on site gym

Question 5

Pecuniary benefits

Answer 5

Financial rewards for work e.g wages and commission

Question 6

Disutility of of work

Answer 6

Factors that reduce workers utility such as unsociable hours , dirty , smelly or unpleasant condition , risk or danger

Question 7

Compensating wage differential

Answer 7

Payment to a worker to increase pay to compensate for factors that might cause disutility

Question 8

Trade union

Answer 8

Organisation of worker who group together to protect their intrests often seen in form of wage demands

Question 9

Collective bargaining

Answer 9

Process by which employers negotiate the pay and condition for a group of workers in single negotiations , typically with there unions

Question 10

Closed shops

Answer 10

Situtation in which all members of a work force must belong to the same union which works as a monopoly supply of labour

Question 11

Monopsony

Answer 11

Sole employer of a particular type of labour

Pure monopsony are rare but have degree of monopsony power in market for teachers and nurses

Greater number of workers employed in a firm the greater the monopsony power

Question 12

Closed shops

Answer 12

All members of a work force belong to the same union , which then effectively acts as a monopoly supply of labour

Question 13

Wage discrimination

Answer 13

Paying diffrent workers diffrent wages to the same Job

Question 14

The 2 conditions for wage discrimination to take place

Answer 14

Must be more than one group who are willing to work for different wages

Firms must be able to differentiate between group and keep them separate

Question 15

Absolute poverty

Answer 15

Being unable to afford basic need of life e.g
Food, warmth, drink, shelter , housing , clothing

Question 16

Relative poverty

Answer 16

Bring poor compared to others

In uk this means living in a household with income below 60 % median (average

Question 17

Lorenz curves

Answer 17

(Named after max Lorenz an American economist)

A graphical representation of distribution of income across a population

Question 18

Gini coefficient

Answer 18

Numerical measure of income inequality based in the Lorenz curves

Between 0-1

0 being perfect equality in the distribution of income

1 being perfect inequality I.e one person receiving all of the income