THE LABOUR MARKET
What is the labour market?
This is the market where workers offer skills and employers hire them.
What is human capital?
This refers to the skills and education a worker has.
What is inflation?
Sustained rise in general price levels.
Laws that set the lowest legal wage.
What is minimum wage law?
What is gross income?
Income before deductions
In the labour market, wages are considered the________ of labour.
What is the price?
Name two factors influencing choices of occupation.
What are wages, education, job security, working conditions, location, personal interest?
Sustained fall in general price level.
What is deflation.
What is Trade Union?
An organization that protects workers.
What is net income?
Income after taxes and deductions.
If labour supply increases but demand stays the same, wages will likely________?
What is decrease/ fall?
The ability to move to another area for work.
What is geographical mobility?
Inflation reduces this
What is the purchasing power or real income
Organization that protects business owners.
What is an employer association?
What is discretionary income?
Income left after paying necessities
When a demand for labour is high and supply is low, wages will...?
What is increase/ rise?
What is job security?
This makes permanent jobs more attractive than temporary jobs.
Deflation may lead to this problem in the labour market.
What is unemployment?
Legal body that settles workplace disputes.
What is an industrial tribunal?
This type of income measures purchasing power.
What is real income?
Name two factors that determine wages.
What is supply and demand?
(also, will accept skill level, government laws, trade unions)
Explain how education affects earning potential.
What is higher education increases productivity and leads to higher wages.
Name two effects of inflation
What is reduced purchasing power, lower real income, hurts savers, benefits borrowers?
Name one advantage and one disadvantage of minimum wage.
Advantage: Protects workers/ reduces poverty.
Disadvantage: May increase business costs/ reduce employment.
What is real income?
It is when inflation rises but wages stay the same, this type of income falls.