labour markets & other market failures

What is income inequality?

The unequal distribution of income among individuals or households in an economy.

What is the Gini coefficient?

A measure of income inequality ranging from 0 to 1, where 0 represents perfect equality and 1 represents perfect inequality.

What is derived demand for labour?

Demand for labour that arises from demand for the goods and services that labour helps to produce.

What is a minimum wage?

A legally mandated wage floor, set above the equilibrium wage to raise the incomes of low-wage workers.

What is a foreign worker quota?

A government restriction on the number or proportion of foreign workers that firms can employ.

What is moral hazard?

A situation where individuals take greater risks because they are protected from the full consequences of their actions, such as through insurance coverage.

What is congestion pricing?

A policy where motorists are charged for using roads, particularly during periods of heavy traffic, to reduce excessive road usage and congestion.

What is an insurance co-payment?

A requirement for insured individuals to bear a proportion of the costs of an insurance claim rather than having the insurer pay the entire amount.

What is a deductible (excess)?

A fixed amount that an insured individual must pay before insurance coverage applies.