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Economics > Chapter 18 Workers > Flashcards

Chapter 18 Workers Flashcards

1
Q

Name wage factors (4)

A

wages

overtime pay

bonuses

commision

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2
Q

Define earnings

A

total pay received by worker

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3
Q

Define wage rate

A

wage worker receives per unit of output/time

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4
Q

Define a time rate system

A

wages based on number of hours worked

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5
Q

Define a piece rate system

A

wages based on amount workers produce

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6
Q

Define overtime pay

A

pay to workers that work more than usual working week

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7
Q

Benefits of overtime pay (3)

A

employers can respond to higher demand without hiring new workers

employees can earn more

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8
Q

Disadvantages of overtime pay (3)

A

workers may become tired

productivity may decrease

product quality may decrease

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9
Q

Define a bonus

A

extra payment

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10
Q

Purpose of bonuses (2)

A

reward workers who contribute to higher profits

provide incentive for workers

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11
Q

Disadvantages of bonuses

A

can cause resentment for not receiving bonus

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12
Q

Define commision

A

workers receive proportion of sales value they make

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13
Q

Name non-wage factors (10)

A

Job satisfaction

Type of work

Working conditions

Holidays

Pensions

Fringe Benefits

Job security

Career prospects

Size of firm

Location

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14
Q

Define fringe benefits

A

benefits provided to workers by employers

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15
Q

Examples of fringe benefits (3)

A

meals

healthcare

leisure facilities

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16
Q

Define job security

A

how easily workers are likely to become obsolete

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17
Q

skip

A

skip

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18
Q

Q
Unskilled workers are paid more than skilled workers

True or False?

A

False

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19
Q

Factors affecting labour Demand (5)

A

Whether labour can be easily replaced with capital

Demand for the service a firm provides

Trends/events

productivity of workers

Cost of capital

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20
Q

Determinants of wages (5)

A

demand and supply

Bargaining power of workers

Government Policies

Public opinion

Discrimination

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21
Q

Name government policies/actions that can change wage rates (5)

A

National Minimum Wage

improved education

immigration policies

anti-discrimination laws

technology

22
Q

Causes of changes in the supply of labour (4)

A

change in labour force

change in qualifications to do job

change in non-wage benefits of job

change in (non)wage benefits of other jobs

23
Q

Causes of changes in the demand of labour

A

Changed demand for the product (derived demand)

Change in labour productivity

Change in the price of capital

24
Q

Why may wages change over time? (6)

A

Change in demand/supply of labour

Changes in stages of production

Changes in bargaining power

Changes in government policy

Changes in public opinion

Changes in individuals earnings over time

25
Primary sector workers are generally paid less than secondary and tertiary sector workers True or False?
True
26
Why are workers paid less in the primary sector
workers have less skills/qualifications
27
Define the primary sector (2)
extraction/collection of raw materials first stage of production
28
Examples of primary sector industries (3)
agriculture mining fishing
29
Define the secondary sector
processing of raw materials into finished/semi-finished goods
30
Name limiting factors (6)
physical strength geographical/occupational mobility level of education social capital Age Discrimination
31
Define Elasticity of demand of labour
a measure of the responsiveness of demand for labour to a change in the wage rate
32
Define elasticity of supply of labour
a measure of the responsiveness of the supply of labour to a change in the wage rate.
33
Determinants of elasticity of demand for labour (4)
The proportion of labour costs in total costs the ease with which labour can be substituted by capital the elasticity of demand for the product produced The time period
34
explain how the proportion of labour costs in total costs is a determinant of elasticity of demand for labour
If labour cost form large proportion of total cost, change in wage have significant impact on costs so demand = elastic
35
explain how the ease which labour can be substituted by capital is a determinant of elasticity of demand for labour
If workers easily replaceable by capital ---> demand elastic to change in wage rate
36
explain how the elasticity of demand for the product produced is a determinant of elasticity of demand for labour
rise in wage ---> increased cost of production ----> increase price ----> demand contract and demand for labour fall more elastic the product, the greater change in demand for labour hence demand for labour elastic
37
explain how the time period is determinant of elasticity of demand for labour
inelastic in short-run because of contracts elastic in long-run because if wage stay high for long time, firm don't renew contracts as labour is a cost of production
38
Determinants of elasticity of supply for labour (6)
The qualificationand skills required legnth of training period The level of employment The mobility of lavour The degree of vocation The time period
39
Explain how the qualification and skills and a long training period required is a determinant of elasticity of supply for labour
High qualification and skill required and long training period ---> not many people can join the profession ----> labour supply inelastic (especially in short-run)
40
Explain how the level of employment is a determinant of elasticity supply for labour
If many workers already employed, supply of labour to any occupation is likely inelastic. Employer have to raise wage significantly to attract workers already in other jobs to switch jobs
41
Explain how the mobility of labour is determinant of elasticity of supply for labour
if geographically or occupationally mobile, workers more sensitive to wage chhanges as they can easily switch from one job too another. if labour is mobile, supply more elastic
42
Explain how the degree of vocation is a determinant of elasticity of supply for labour
the stronger attachment of workers to their jobs, more ineslastic the supply incase of a decrease in wage rate
43
Explain how the time period is a determinant of elasticity of supply for labour
inelastic in short-run because of contracts or haven't noticed the changes in wage rate Become elastic over time
44
Define specialisation
the concetration on particular products or tasks
45
Define Division of Labour
workers specialising in particular tasks
46
Advantage of specialisation and division of labour for the firm (2)
lower unit cost per unit produced (doing same task multiple times, makes workers very good at that task (output per worker increases)) training process is simpler and often easier to manage (employees learn from someone already in the occupation)
47
Advantages of specialisation and divison of labour for the worker (3)
workers can acquire skills needed for the job faster If worker skills are in high demand, they can earn high wages Specialising in less demanding jobs can reduce pressure on workers
48
Disadvantages of specialisation and divison of labour for the worker (2)
Trouble switching to another job if demand for their service falls can become bored and not make full use of their talents
49
disadvantage of specialisation and division of labour for the firm (2)
Employee motivation decreases, resulting in a decrease in productivity and output. (higher unit costs) difficult to cover up absent people Workers might get bored
50
Factors affecting labour supply (6)
level of education/qualifications required length of training period degree of risk/working conditions size of the labour force non-wage factors affecting how appealing a job is wage an dnon-wages factors affecting how appealing OTHER occupations are

Economics (19 decks)

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