Test #3 Flashcards
Political factors of wages
- Unions
- Laws
- Special interest groups
What are the economic factors of wages?
- Supply & Demand
- Productivity
- Private vs. public
Social factors to wages
- Discrimination
- Personality
- Connections
Marginal productivity theory of income distribution
Labor is paid the value of the output generated. If worker produces something of high value then worker will earn high wage
To be considered employed you have to be
16+ and either:
Work for pay
Work at least 15 hrs in last week w/o pay or
Hold a job but currently not working
Discouraged workers
Those who do want a job, but have given up looking for one
Current national unemployment rate
7.6%
Idahos unemployment rate
6.3%
Major criticisms of unemployment rate
- Doesn’t measure all unemployed that want a job
- Some people lie
- Doesnt measure underemployment
Frictional unemployment
Takes time to find a job
Cyclical unemployment
Unemployment rises during recessions/depression and decreases during prosperous times
Cartel
Formal organization of producers that agree to coordinate prices and/or production…. OPEC
Merger
2 companies form 1
Acquisition
A big company buys out a smaller company
