Home >> Flashcards >> Economics >> Chapter 5- Labor and Financial Capital Markets
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Term
| What is the Demand Curve for Labor? |
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Definition
| quantity of labor employers want to hire at any salary or wage under ceteris paribus (all factors are constant). |
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shift in demand for labor - 3 causes |
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Definition
1. changes in product quantity produced with labor
(ex: more $$ spent on health care increases demand for nurses)
2. changes in how output is produced
(ex: keeping costs low for higher profits by hiring many nurse aids, instead of many higher paid nurses)
3. government regulations
(ex: requiring nurses to perform some duties, rather than less skilled nurse's aid, yet restricting nurses from some duties) |
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shifts in labor supply - 2 causes
(the amount of people who want to work a certain job) |
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Definition
1. how the job is pervceived
2. government policies
(ex: decreases with high qualifications requirements for jobs, increases with reduced qualifications or gov. subsidised training programs) |
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Minimum Wage
(currently $7.25) |
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Definition
a price floor that set by the government that makes it illegal for an employer to pay less than a certain rate |
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higher minimum wage; full time annual salary above poverty line of $14.5k for family of 2 |
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laws that impose an upper limit on the intrest rate lenders can charge |
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