Neoclassical Economic Paradigm in Labor Market

These flashcards cover key vocabulary and concepts from the Neoclassical Economic Paradigm and its implications on labor, economics, and industrial relations.

Neoclassical Economics

A modern economic theory focusing on supply and demand principles, treating labor as a commodity.

Price Theory Model

A model stating that wages and labor quantity are determined by supply and demand.

Equilibrium Wage

The wage rate at which the supply of labor equals the demand for labor.

Diminishing Marginal Product

The principle that adding more workers results in smaller increases in output.

Supply Curve

A graphical representation showing that higher wages lead to a greater supply of labor.

Demand Curve

A graphical representation illustrating that lower wages encourage higher demand for labor.

Minimal Terms

Government-mandated minimum standards for employment that cannot be waived.

Commodity Fetishism

A concept where products are seen as having value on their own, obscuring the labor behind them.

Capitalism

An economic system where private individuals own businesses and property, operating for profit.

Hegemony

The leadership of a ruling group that maintains power through the acceptance of its ideas as common sense.

Labour-Power

A worker’s capacity to work, which can be sold to employers in exchange for wages.

Perfect Competition

A market structure characterized by full information, rational behavior, and the absence of externalities.

Class Struggle

The conflict between capitalists, who control the means of production, and workers, who sell their labor.

Surplus Value

The difference between the value produced by labor and the wages paid to the laborer.

Unemployment

A situation where labor supply exceeds labor demand, typically when wages are set above equilibrium.

Neo-conservatism

A political ideology supporting free markets, reduced government intervention, and the promotion of democracy.