Flashcards
Chapter#1 Labour Economics
Cards in this deck (16)
- 1What are the three primary factors of production?Land, labour, capital
- 2Why has labour's share of GDP decline in the last two decades?Globalization, rapid technological change, "uberization"
- 3The essential economic forces are:Supply and demand
- 4Employment+ unemployment= ?Labour force
- 5The essential equilibrium outcomes are:Prices and Quantities, where the P variable is Wages, and the Q variable is employment
- 6Disaggregated labour markets can be analyzed along several dimensions such as:Regional, Industrial, Occupational, Demographic
- 7What is the definition of policy?conscious, explicit action in the form of a tax, subsidy, regulation or law that is designed to affect behaviour and outcomes
- 8What are the two components to a scientific approach:Theoretical component and empirical component
- 9What is the theoretical component of a scientific approach based on?-Based on models (S&D being the simplest)
- Models consist of linkages between economic variables
- How does one variable affect the other? - 10Describe the empirical component of a scientific approach:- All assertions should be subjected to Empirical validation
- This means evidence to support your conjectures
- You have to act like a lawyer
- You must leave yourself open to being proven wrong
- This is called Refutability - 11What does a paradigm mean?- A paradigm is a way you view the world
- 12What paradigm to we use in class?- Neo-classical free market approach
- 13What are some examples of other paradigms?- Marxian approach
- Institutionalism - 14Describe the assumptions in a Neo-classical approach:-Almost all economic actors make their own S&D choices by their own free will without facing major constraints
-No single firm or group of workers has undue influence on market outcomes
- Like a political election, nothing can be fixed
- All are motivated by greed
- Adam Smith's invisible hand - 15What are some outcomes in a Neo-Classical approach?-Wages and employment levels are generated by S&D forces
- Wages determined by the marginal product of labour
- Think the fable of the little red hen
- Implies that workers are paid according to their respective productiveness
- Unemployment should be temporary - 16Describe the institutionalism paradigm?- Economic actors do not make choices based on their own free will
- Elite groups of workers and firms have undue influence on market outcomes
-The "fix" is in and the forces of coercion rule
-Methodology tends to not be quantitative and empirical, but rather qualitative and descriptive realism
- This means more literary and less data in their analysis
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- Business/Economics Flashcards on Chapter#1 Labour Economics, created by Abdi Yusuf on 21/09/2017.
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- Abdi Yusuf
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