demand for one item depending on the demand for another item
1 of 11
Marginal revenue product (MRP)
the change in a firm's revenue resulting from employing one more worker
2 of 11
Marginal product of labour (MPL)
the change in output that results from employing one more worker
3 of 11
Flexible labour market
a labour market that adjusts quickly and smoothly to changes in the demand for and supply of labour
4 of 11
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
5 of 11
Income effect of a wage rise
the effect on the supply of labour caused by the change in the ability of leisure
6 of 11
Substitution effect of a wage rise
the effect of on the supply of labour caused by a change in the opportunity cost of leisure
7 of 11
Elasticity of supply of labour
the responsiveness of the supply of labour to a change in the wage rate
8 of 11
Human capital
the skills, knowledge and experience that workers process
9 of 11
Economic rent
a surplus paid to a factor of a production above what is needed to keep it in its current occupation
10 of 11
Transfer earnings
the amount a factor of production could earn in its best alternative occupation, the minimum amount that has to be paid to ensure a worker stays in their present job, if the wage falls below this level, they will transfer to alternative employment
11 of 11
Other cards in this set
Card 2
Front
the change in a firm's revenue resulting from employing one more worker
Back
Marginal revenue product (MRP)
Card 3
Front
the change in output that results from employing one more worker
Back
Card 4
Front
a labour market that adjusts quickly and smoothly to changes in the demand for and supply of labour
Back
Card 5
Front
a labour supply curve showing the substitution effect dominating at low wages and the income effect dominating at high wages
Comments
No comments have yet been made