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27 Cards in this Set
- Front
- Back
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What is MRP?
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Marginal Revenue Product is the increase in a firm's total revenue resulting from hiring an additional unit of labor or other variable resource.
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What is the Demand Curve for Labor?
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A curve showing the different quantities of labor employers are willing to hire at different wage rates in a given time period.
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The Demand Curve for Labor is equal to what?
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To the marginal revenue product of labor
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What is the formula for MRP?
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MRP = Price times Marginal Product of Labor
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A firm hires additional workers up to what point?
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Point where the MRP equals the wage rate
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If you decrease the wage rate, does the quantity of labor an employer hires increase or decrease?
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Increase!
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What is Derived Demand?
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The demand for labor and other factors of production that depends on the consumer demand for the final goods and services the factors produce.
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What is the Supply Curve for Labor?
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A curve showing the different quantities of labor workers are willing to offer employers at different wage rates in a given time period.
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What is Human Capital?
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The accumulation of education, training, experience, and health that enables a worker to enter an occupation and be productive.
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If you increase the wage rate, does the quantity of labor willing to work increase or decrease?
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It increases!
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What is Collective Bargaining?
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The process of negotiating labor contracts between the union and management concerning wages and working conditions.
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Do unions increase or decrease the supply of labor?
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They decrease the supply of labor!
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Do unions increase or decrease the demand for labor?
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They increase the demand for labor
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In unions, if there is an increase in the demand for labor, does wage rate and employment increase or decrease?
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They increase!
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If a union restricts membership, does supply in labor increase or decrease? Does this increase or decrease wage rate? What about employment?
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There will be a decrease in the supply of labor, an increase in wage rate, and a decrease in employment
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What 5 things change labor demand?
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1. Unions
2. Prices of substitute inputs 3. Technology 4. Demand for final products 5. Marginal Product of labor |
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What 5 things change labor supply?
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1. Unions
2. Demographic trends 3. Expectation in future income 4. Changes in immigration laws 5. Education and training |
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What is Distribution of Income?
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How wages and salaries are divided among members of society
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What is the Poverty Line?
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The level of income below which a person or a family is considered to be poor.
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What are In-Kind Transfers?
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Government payments in the form of goods and services, rather than cash, including such government programs like food stamps, Medicaid, and housing.
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In absolute terms, the poverty line is defined as what?
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The cost of a minimal diet multiplied by three!
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What are 3 types of Cash Transfer Programs?
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1. Social Security
2. Unemployment compensation 3. Temporary Assistance to Needy Families |
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What are 2 types of In-Kind Transfers?
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1. Medicare
2. Housing assistance |
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What is Comparable Wealth?
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The principle that employees who work for the same employer must be paid the same wage when their jobs, even if different, require similar levels of education, training, experience, and responsibility.
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Regarding Comparable Worth, a nonmarket wage-setting process is used to do what?
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To evaluate and compensate jobs according to point scores assigned to different jobs.
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What is Featherbedding?
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Union forces firms to hire more workers than are required or to impose work rules that reduce output per worker.
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What is Derived Demand?
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Demand for a factor of production or intermediate good occurs as a result of the demand for another intermediate or final good
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