3.2 Key Terms Quiz Occupation and Wages

QuizOccupations and Earnings

Wages

Amount of money earned in exchange for mental/ physical work donePaid daily/weekly/monthlyPart of cost of production for businessAlso called salary

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Wage Rate

Remuneration paid per unit timeMoney paid according to the work, time, piece

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Labour Market

Place where we buy or sell workers workIt determines the wage rate

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Time Rate

Rate paid per hourVaries in accordance timehigher for risky work

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Piece Rate

Money paid for per unit of outputEncourages the greater productivity in employees

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Gross Earnings

Total amount of money earned Wage earned before direct tax

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Fringe Benefits

Other perks given in addition to wagespaid in cash or kindEx. pensions, medical/ housing/transport allowances.

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Factor Substitution

Replacing one factor of production by otherImproves productivity and changes cost structure for firmMakes firms more efficient

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Derived Demand

Indirect demandDemand originated due to the greater demand for the product that facoter produced

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Wage Differential

Discrimination in the salary or workerPaying different money due to differing colour , religion , gender

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Dirty Jobs

Working in high risk areasHigh paid unsocial jobs

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Skilled Labour

Worker with specific trainings and expertise It provides higher wages

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Gender Pay Gap

Difference in the pays dues to sexSame work but different salary due to gender

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Market Intervention

Government interference in particular market Introduction of certain controls in the functioning of free market.Its objective to protect market from failure.

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Exploitation

Act of using others resources without adequate compensationTaking off others benefit of work

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Unemployment

Unavailability of work at acceptable wage rateSituation when worker want to join workforce but fails to get job.

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