Lesson 49 - unit 10 Flashcards
What is the difference between a wage and a salary?
A wage is an hourly rate paid for labor, while a salary is a pay for a job performed, regardless of how long it takes.
What are some advantages and disadvantages of wages?
- You can go home at the end of your shift
- When you work overtime you get paid more
- get paid less than a salary
What are some advantages and disadvantages of salaries?
- You are paid more than a wage
- often have to bring work home
- often have to work over 40 hours a week
What is productivity?
The ability to produce a good or service in a specific period of time.
What is functional distribution of income?
It measures income among different businesses and occupations in the economy.
What is personal or household distribution of income?
It is a measure of the distribution of income among groups of households according to income ranges.
What is a common way that economists break down household income?
Quintlets.
In 2007, what percentage of all national income did the 20% of households with the highest income earn?
Just over half.
In 2007, What percentage of all individual income taxes did the 20% of households with the highest income pay?
86.3%
What is minimum wage?
A legally mandated minimum hourly wage that all employers must pay workers.
What are arguments for minimum wage?
- Insures decent income
- Helps economy
- Gives workers purchasing power
- Increases production
- Encourages low-wage workers
- reduces poverty
- Leads to fewer income assistance programs
What are arguments against minimum wage?
- Creates an artificial price floor
- Increases supply and decreases demand
- Leads to higher prices
- Is a challenge to small businesses
- Can force businesses to hire fewer workers or close
- Depresses wages
