Econonomics - 3.3 Workers Flashcards
labour market
A resource market where the demand for labour is from firms and the supply of labour is households/workers
salary
An amount of money paid on an agreed regular basis, usually monthly
wages
An agreed amount of money per hour
commission
A payment which is typically a percentage value of the transaction involved
piece rate pay
An agreed amount paid per completed item that the worker produces
performance-related pay (PRP)
Payment to the worker based on how well they perform
share options
Payment through the issuing of additional shares in the company
fringe benefits
Benefits provided in addition to the normal salary, such as healthcare, schooling, free lunch, etc
bonus
Paid in addition to salary and is usually a one-off payment.
specialisation
A process of concentrating on one specific skill or task within the production line
(It must happen when division of labour occurs)
wage factors that influences people on occupational choices:
salary, wages, bonus, commission, piece rate pay, PRP, share options, fringe benefits
non-wage factors that influence people on occupational choices:
family influences, job security, length of training, job satisfaction, career prospects, level of challenge, status
Factors that can shift the demand curve for labour:
- Changes to the demand for goods and services that the labour is used to produce
- Changes in productivity of workers
- Changes to production process
Factors that can shift the supply curve for labour:
- Changes to country’s population
- Changes to access for education/training
unemployment
Number of people in an economy who are actively seeking work but cannot find it
