Labour Market Flashcards Preview

Micro Economics A2 > Labour Market > Flashcards

Flashcards in Labour Market Deck (12)
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1
Q

What is wage equal to?

A

W=MC=MRP

2
Q

MRP

A

Change TR/Change no workers

3
Q

VMP value of margina product

A

MRP=MPP*P

4
Q

Alternative formula for MRP

A

MRP=MPP*MR

5
Q

What does the curve of MRP rep?

A

Demand (downward sloping section

6
Q

MP Theory

A

Profit-max firms will employ extra units of a variable factor up to the point where the additional cost of the factor equals the extra rev it produces

7
Q

Substitution effect

A

Higher wage=>work more bc leisure means higher oppo cost

Always positive

8
Q

Income effect

A

With higher wages ppl can afford to work less and have more leisure

9
Q

Geographical immobility

A

Unable to move to different places to seek job
Family ties and living cost and travel
Relocation sub

10
Q

Occupational immobility

A

Unable to move between jobs as they lack appropriate skills or training
Manu to service

11
Q

Zero-hour contract

A

Workers r given a permanent contract but no min hours to be worked

12
Q

Employment raté

A

Employed / working age population