Labour Market Basics
What is the labour market?
This is where workers supply their skills and employers demand workers.
What is gross income?
Income before deductions.
What is saving?
People do this to prepare for emergencies.
What is unemployment?
When people cannot find work but are willing and able.
What is inflation?
A rise in the general price level.
What are forces influencing career choice?
These influence a person’s choice of occupation, such as salary and education.
What is net income?
Income after deductions.
What is interest?
Money borrowed must be repaid with this extra cost.
What is frictional unemployment?
This type of unemployment happens between jobs.
What is deflation?
A fall in the general price level.
What are wages?
The price of labour.
What is real income?
What your money can actually buy.
What is spending?
Buying goods and services to satisfy needs and wants.
What is structural unemployment?
Unemployment caused by lack of matching skills.
What is real income?
Inflation reduces this type of income.
What is the labour force?
The total number of people willing and able to work.
What is disposable income?
Income left after taxes.
What is a mortgage (or long-term loan)?
One reason people borrow money to buy a house.
What is cyclical unemployment?
Unemployment caused during a recession.
What is purchasing power?
When prices rise but wages stay the same, this decreases.
What is an increase in labour supply?
When the number of workers increases in a country.
What is discretionary income?
Money left after paying for necessities.
A person chooses to save $200 instead of buying new shoes because they are planning for university next year.
What is opportunity cost?
What is seasonal unemployment?
Jobs that depend on tourism seasons in The Bahamas are examples of this.
What is reduced profit or increased unemployment?
One negative effect of deflation on businesses.