Microeconomics Booklet Six Flashcards
1
Q
Absolute Poverty
A
- when someone is unable to afford the basic necessities of life (food, water, shelter, warmth, clothing etc.)
2
Q
Benefits Trap
A
- a situation where it is more rewarding for someone to rely on transfer payments from the government than to accept paid work
3
Q
Closed shop
A
- a situation where all employees are compelled to belong to a trade union as a condition of employment
4
Q
Collective bargaining
A
- process by which an employer and a trade union negotiate the pay and conditions of a group of workers
5
Q
Compensating wage differential
A
- additional pay given to workers in order to encourage them to do jobs that are physically difficult, dangerous or unpleasant
6
Q
Derived demand for labour
A
- labour is not demanded for its own sake, but instead is based entirely on the demand for the output that is produces
7
Q
Gini coefficient
A
- numerical measure of inequality in the distribution of income based on the Lozenz curve
8
Q
Income
A
- flow of money earned or received over time
9
Q
Leisure
A
- time spent purely in enjoyment
10
Q
Lorenz curve
A
- graphical illustration of the distribution of income in an economy
11
Q
Marginal physical product
A
- change in total output generated by the employment of an additional unit of a variable factor of production
12
Q
Marginal revenue product
A
- value of the additional output produced by an extra worker.
- mpp X the price of a uni of output
13
Q
Monopsony
A
- only buyer in a market
14
Q
Net advantages
A
- overall benefit from a particular job (pecuniary benefits + non-pecuniary benefits - disutility of work)
15
Q
Non-pecuniary benefits
A
- non-financial rewards for work
16
Q
Pecuniary benefits
A
- financial rewards for work e.g. salary
17
Q
Poverty cycle
A
- where someone was born into poverty is more likely to remain in poverty and then have children who are born into poverty so the cycle repeats due to lack of social mobility
18
Q
Relative poverty
A
- when someone is poor relative to other people. In the U.K. this is define as earning less that 60% of median household income
19
Q
Total physical product
A
- total amount of output produced
20
Q
Trade union
A
- group of workers who come together to protect their interests
21
Q
Wage discrimination
A
- paying different workers different amounts to complete the same work or do the same job
22
Q
Wealth
A
- stock of assets that someone had at a given moment
23
Q
Work
A
- time spent in paid employment
