The Role of Labor and Wage Determination

Flashcards about wages, labor, and market forces.

What are wages?

Payments made to workers in exchange for their labor.

What is the equilibrium wage rate?

The wage at which the quantity of workers demanded equals the quantity of workers supplied.

What are wages?

Payments made to workers in exchange for their labor.

What is the equilibrium wage rate?

The wage at which the quantity of workers demanded equals the quantity of workers supplied.

How are wages determined?

Supply and demand forces, resulting in an equilibrium wage where worker supply meets demand.

What does the supply curve represent in the context of labor?

Represents how much labor is available at different wage rates.

What does the demand curve represent in the context of labor?

Illustrates the quantity of labor employers are willing to hire at different wage rates.

Why do businesses hire workers (Labor Demand)?

Businesses hire workers to produce goods or services.

How do workers respond to wage offers (Labor Supply)?

Workers respond to wage offers based on their current situation.

What do supply and demand forces do to wages?

Forces that push wages toward an equilibrium point.

What is derived demand?

Demand for a product or resource based on its contribution to the final product.

What is human capital?

Knowledge and skills that enable workers to be productive.

Why do wage rates differ?

Knowledge and skills that enable workers to be productive, working conditions, discrimination in the workplace, government actions .

What characterizes a professional job in terms of human capital?

Highest human capital, specialized training.

What characterizes a skilled job in terms of human capital?

Significant investment in specialized training.

What characterizes a semi-skilled job in terms of human capital?

Some training received.

What characterizes an unskilled job in terms of human capital?

Low level of human capital.

How do tough working conditions affect wages?

Dangerous or unpleasant jobs often pay higher wages to attract workers.

How do job perks affect wages?

Some low-wage jobs offer non-monetary benefits that attract workers.

What is wage discrimination in the workplace?

Wage discrimination based on race, ethnicity, gender, or other factors.

What is occupational segregation in the workplace?

Certain groups trapped in low-paying jobs.

What is the glass ceiling in the workplace?

Unseen barriers to advancement for women and minorities.

What is the minimum wage?

Lowest legally allowed wage per hour of work.

Name any antidiscrimination laws in the workplace.

Equal Pay Act (1963) and Civil Rights Act (1964).