Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Prelim Economics > Labour Markets > Flashcards

Labour Markets Flashcards

1
Q

A labour market is…

A

where individuals seeking employment interact with employers who obtain the most appropriate labour skills for their production process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Economies do not have a single labour market…

A

Instead they have many distinct labour markets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Labour markets can be segmented by… (4)

A
  1. Individuals firms
  2. Industries
  3. Local areas
  4. Occupations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Labour is a derived demand. Define Derived Demand…

A

A demand for a commodity which is a consequence of th demand for something else.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

OUTPUT factors affecting demand of labour… 3

A
  1. General economic conds (aggregate demand)
  2. Conds in the firm’s industry
  3. Demand for individuals firms products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

INPUT factors affecting demand of labour… 3

A
  1. Productivity of labour
  2. Cost of other inputs (capital)
  3. Cost of labour vs Foreign labour
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A firms demand for labour will be elastic if… 3

A
  1. Substituting labour/capital is easy.
  2. Labour costs are a high proportion of total costs.
  3. Its hard to pass on increased labour costs (with higher prices) to consumers.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Factors in the Supply of Labour… 6

A
  1. Pay Levels.
  2. Working Conditions.
  3. Education/Skills/Experience Requirments.
  4. Mobility of Labour (Occupational and Geographical).
  5. Labour force participation rate.
  6. Govt policy decisions (eg Licence’s given out).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

“The workforce” is people who

A

Aged 15 or above, and working or actively seeking work.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

On paid leave, on strike, receiving workers comp are still….

A

Included in workforce.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Full time domestic duties, full-time non-working students, without a job but not seeking work (eg sicknesss)

A

Not included in workforce.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

There are two important aspects of the workforce…

and they are affected by… (3)

A 
1 Size
2 Quality
-----
Size of population
Age of pop
Educational Patterns
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Size of population impacted by…2

A

Net migration.

Natural population increase.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In times of boom, to increase population size, GOVT may…

A

Increase migration quotas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Aging workforce of recent years… Why? Why a problem?

A

Better health standards and higher living standards. Problem as greater workforce needed to support aged people.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Workforce quality mostly determined by… (2)

A

Education.

More education = Higher paid/More productive

17
Q

Participation rate =

A

Labour force/Participation Rate x 100.

18
Q

In long run, Nations economic growth and living standards determined by… (3)

A

Population Growth.
Productivity growth.
Participation rate.

19
Q

Nominal Wage…

A

Number figure of wage.

20
Q

Real Wage…

A

Nominal wage adjusted for inflation. ie Purchasing power of wage.

21
Q

Employers can generally afford higher real wages if there is also increase in…

A

Productivity.

22
Q

Differences in wage outcomes are caused by (different jobs)… (3)

A
  1. Skills and Education required.
  2. Working conditions (worse = higher paid).
  3. Occupational mobility (high = lower paid, since supply is high).
23
Q

Different wages in same occupations caused by… (6)

A
  1. Geographical mobility (isolated location = higher wage).
  2. The productivity of labour.
  3. Capacity of firm to pay (successful firm = high pay)
  4. Age/Experience
  5. Gender (discrimination).
  6. Migrant status and background (skilled migrants/ english speaking proficiency).
24
Q

Define enterprise bargaining…

A

Negotiations between employers and employees (or thier representatives) about pay and working conditions at an individual firm.

25
Q

During 1980s wages were mostly…

A

Set by the award wages system. (Made by the Fair Work Commission).

26
Q

Shift towards greater income distribution was caused by..

A

Shift to enterprise bargaining from award wages system.

27
Q

Different wage outcomes across different industries can also be caused by…

A

Restructuring of the economy. New industries; short supply - high pay. Declining industries; falling demand - lower pay.

28
Q

Falling union membership’s effect on income distributioin.

A

Creates greater variation in wage outcomes for similar jobs in different firms/industries.

29
Q

Examples of non-wage outcomes. 4

A
  1. Sick/holiday leave
  2. Super
  3. Salary packaging (car, laptop, phone etc)
  4. Bonus cash payments (reward bonus due to person/firm succsess)
30
Q

Non-wage outcomes are…

A

benefits employees receive in addition to ordinary and overtime payments.

Prelim Economics (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions