Economics of Work and Leisure

?
Earnings
wages + overtime pay, bonuses and commission
1 of 84
Economically Inactive
working age people whoa re neither in employment nor unemployed and so are not part of the labour force
2 of 84
Labour Force Participation Rate
the proportion of working age people who are economically active
3 of 84
Employment Rate
the propertion of people of working age who are in work
4 of 84
G8
the group of major economics: canada, france germany, italy, russia, uk, usa
5 of 84
Part-timer Workers
people working less than 30 hours a week
6 of 84
Temporary Work
casual work, seasonal work, working for employment agencies, fixed-period contract work
7 of 84
Homeworking
working either from home or in different places from the central office
8 of 84
Teleworking
working using a telephone and a computer at home, in an internet cafe or train or plane
9 of 84
Occupational Segregation
the dominance of an occupation by one gender
10 of 84
Tax Wedge
the gap between what employers pay for labour and what workers recieve in disposable income
11 of 84
Outsourcing
subcontracting part of production process to another firm
12 of 84
Offshoring
transferring part of the process to another country, the production may be outsourced or may be undertaken by another firm in a dif country
13 of 84
Monopoly
a single seller
14 of 84
Market Concentration Ratio
the % share of the market of a given number of firms
15 of 84
Short Run
the time period when at least one factor of production, usually capital, is in fixed supply
16 of 84
Fixed Costs
costs that do not change in the SR with changes in output
17 of 84
Variable Costs
costs that change with changes in output
18 of 84
Average Cost
total cost / output (also called unit cost)
19 of 84
Average Fixed Cost
total fixed cost / output
20 of 84
Av Variable Cost
av v cost / output
21 of 84
Marginal Cost
the change in total cost resulting from changing output by one unit
22 of 84
Long Run
the period of time when it is possible to alter all factors of production
23 of 84
Economy of Scale
a reduction in LR AC resulting from an increase in the scale of production
24 of 84
Diseconomy of Scale
an increase in LR AC caused by an increase in the scale of production
25 of 84
Minimum Efficient Scale
the lowest level of output at which full advantage can be ttaken of economies of scale
26 of 84
Constant Returns to Scale
LR AC remaining unchanged when the scale of production increases
27 of 84
Internal Economics of Scale
EoS that occur within the firm as a result of its growth
28 of 84
External Economies of Scale
economies of scale that result from the growth of an industry and benefit firms within the industry
29 of 84
Internal DEoS
diseconomies oS experienced by a firm caused by its growth
30 of 84
External DEoS
diseconomies oS resulting from the growth of the industry, affecting firms within the industry
31 of 84
Average Revenue
total revenue / output
32 of 84
Marginal Revenue
the change in total revenue resulting in sale of one more unit
33 of 84
Perfect Competition
a market structure with many buyers and sellers, free entry + exit and identical prouct
34 of 84
Price Taker
a firm that has no influence on price
35 of 84
Price Maker
a firm that influences price when it changes its output
36 of 84
Unit Elasticity of Demand
when a given % change in price causes and equal % change in demand, leaving total revenure unchanged
37 of 84
Predatory Pricing
setting price low with the aim of forcing rivals out the market
38 of 84
Superior Good
a good with positive income elasticity of demand greater than 1
39 of 84
Barriers to Entry
obstacles to new firms entering a market
40 of 84
Barriers to Exit
obstacles to firms leaving a market
41 of 84
Sunk Costs
costs incurred by a firm that it cannot recover should it leave the market
42 of 84
Limit Pricing
setting a price low to discourage the entry of new firms into the market
43 of 84
Profit Maximisation
achieving the highest possible profit where MC=MR
44 of 84
Supernormal Profit
profit earned where AR>AC
45 of 84
Normal Profit
the level of profit needed to keep a firm in the market in the long run
46 of 84
Natural Monopoly
a market where LRAC are lowest when output is produced by one firm
47 of 84
Legal Monopoly
a market where a firm has a share of 25% or more
48 of 84
Dominant Monopoly
a market where a firm has a 40% or more share
49 of 84
Oligopoly
a market structure dominated by a few large firms
50 of 84
Kinked Demand Curve
a demand curve made up of 2 parts; suggest oligopolists follow each others price reductions but not price rises
51 of 84
Cartel
a group of firms that produce seperately but sell at one agreed price
52 of 84
Game Theory
a theory of how decision makers are influenced by the actions and reactions of others
53 of 84
Contestable Market
a market in which there are no barriers to entry or exit and the costs facing incumbent and new firms are equal
54 of 84
Hit-and-Run Competition
firms quickly entering a market when there are supernormal profits and leaving it when the profits disappear
55 of 84
Sales Revenue Maximisation
the objective of achieving as high a total revenue as possible
56 of 84
Growth Maximisation
the objective of increasing the size of the firm as much as possible
57 of 84
Profit Satisficing
aiming for a satisfactory level of profit rather than the highest level of profit
58 of 84
Stakeholders
people affected by the activities of a firm
59 of 84
Utility Maximisation
the aim of trying to achieve as much satisfaction as possible
60 of 84
Derived Demand
demand for one item depending on the demand for another item
61 of 84
MRP
(marginal revenue product) the change in a firms revenue resulting fro employing one more worker
62 of 84
MPL
(marginal product of labour) the change in output that results from employing one more worker. MPxMR
63 of 84
Flexible Labour Market
a labour market that adjusts quickly and smoothly to changes in the demand for and supply of labour
64 of 84
Backward-Sloping Labour Supply Curve
a labour supply curve showing the substitution effect dominating at low wages and the income effect dominating at high wages
65 of 84
Income Effect of a Wage Rise
the effect on the supply of labour caused by the change in the ability to buy leisure
66 of 84
Substitution Effect
the effect on the supply of labour caused by a change in the opportunity cost of leisure
67 of 84
Elasticity of Supply of Labour
the responsiveness of the supply of labour to a change in the wage rate
68 of 84
Human Capital
the skills, knowledge and experience that workers possess
69 of 84
Economic Rent
a surplus paid to a factor of production above what is needed to keep it in its current occupation
70 of 84
Transfer Earnings
the amount of factor of production could earn in its best alternative occupation; the minimum amount that has to be paid to ensure that a worker stays in her/his present job: if her/his wage falls below this level s/he will transfer to the alernative
71 of 84
Monopsonist
a single buyer
72 of 84
Oligopsonist
one of a few dominant buyers
73 of 84
Bilateral Monopoly
a market with a single buyer and seller
74 of 84
Disequilibrium Unemployment
unemployment caused by the AS of labour exceeding AD of labour
75 of 84
Equilibrium Unemployment
unemployment that exists when the labour market is in equilibrium
76 of 84
Non-accelerating inflation rate of unemployment (NAIRU)
NAIRU the level of unemployment that exists when the labour market is in equilibrium
77 of 84
Geographical immobility of labour
barriers to the movement of workers between different areas
78 of 84
Occupational immobility of labour
barriers to workers changing occupations
79 of 84
Gini Coefficient
used to make international comparisons of income inequality, found by using lorenz curve
80 of 84
Lorenz Curve
a diagram commonly used to illustrate income or wealth distribution
81 of 84
Absolute Poverty
the inability to purchase the basic necessities of life
82 of 84
Relative Poverty
a situation of being poor relative to others
83 of 84
Dependancy Ratio
proportion of the population who are too young, too old or too sick to work and so who are reliant on the ouput of those who are working
84 of 84

Other cards in this set

Card 2

Front

Economically Inactive

Back

working age people whoa re neither in employment nor unemployed and so are not part of the labour force

Card 3

Front

Labour Force Participation Rate

Back

Preview of the front of card 3

Card 4

Front

Employment Rate

Back

Preview of the front of card 4

Card 5

Front

G8

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Economics of Work and Leisure resources »