Econ Externalities Flashcards
Federal Minimum Wage
A legally mandated base pay for non exempt hourly workers (US federal min. wage is $7.25) States/ local municipalities may set it to their own wage as long as it is higher than fed. wage
Labor Market
The availability of employment and labor, in terms of supply and demand. (Skilled, unskilled, semi-skilled, and professional)
Labor Market (Supply Shift)
When there are changes in the population, changes in preferences and social norms, and changes in wage rates and opportunity in other markets
Labor Market (Demand Shifts)
Indicates a change in quantity of labor firms are willing and able to buy at every wage
change in Wage does not equal change in demand
Wage Rate
(market price of labor) Where Qs = Qd
Shortage
Upward pressure on wages
Surplus
downward pressure on wages
Market Power
The ability of a single economic agent (or small group of agents) to have a substantial influence on market prices
Perfect Competition
a product market structure where there are many buyers and many sellers of an identical product EXTREMELY RARE
Monopolistic Competition
a product market structure where many firms produce similar, but not identical products
Oligopoly
a product market structure where there are very few firms or that is dominated by few firms
Monopoly
Natural Monopoly
Collusion
Anti-trust Legislation
