Labour supply
What are two things to consider in the labour vs leisure tradeoff?
1. How much time to spend working
2.How much time to spend relaxing
Wages, bonuses, commissions…
Monetary incentives
Wage at which S=D
Equilibrium wage
A price floor set on wages to protect the rights of workers
Minimum wage
Informal labor markets are common where?
Developing countries
What is reservation wage?
The lowest wage someone is willing to accept before choosing not to work
Sophia works as a marketing analyst at a mid-sized company. She earns a decent salary, but what really matters to her is time with her family. This is an example of?
Non-monetary incentives
Voluntary employment is…
Choosing not to work
Purpose of UBI
Provides income regardless of employment—may reduce poverty but affect labor supply
Daniel is a software developer earning $40 per hour, working 40 hours per week. This gives him a comfortable income, but he still feels the need to work full-time to cover his mortgage, car payments, and daily expenses. This is an example of?
Income effect
Maria just graduated with a bachelor’s degree in economics. She hoped to work as a financial analyst, but the job market is tight and opportunities in her field are scarce.This is an example of?
Underemployment/uneployment
The government promises that anyone who is willing and able to work will be offered a public-sector job. Anna, who cannot find private-sector employment, accepts a position cleaning public parks through this program.This is an example of?
Job guarantee
Labor force participation rate is dependent on several factors. List 3.
1. Country
2. Gender
3. Age