Economics Workers

Cards (17)

What are the factors affecting an individual’s choice of occupation?
Wage, Non-wage factors and Limiting factors
What are earnings?
The total pay received by a worker
What are wages?
A payment an employer contracts to pay a worker. It is the basic wage a worker receives, per unit of time or unit of output
There are two types of wages, what are they?
Time Rate and Piece Rate
What is Time Rate?
When workers get paid according to the number of hours worked
Advantage of Time Rate to employers?
Labour cost can be easily calculated
Advantage of Time rate to workers?
Negotiate about the rate paid
What is Piece rate?
Payment based on number of units produced
Disadvantage of piece rate?
Quality may suffer cause workers will be more focused on quantity
Advantage of piece rate?
Less supervision needed
What is overtime pay?
The pay for workers working more hours than the standard working week
Advantage of Overtime pay to employers?
Can respond to higher demand without employing new workers
Advantage of overtime pay to workers?
Workers earn more
Disadvantage of overtime pay?
Workers become tired and less productive
What is a bonus?
An extra payment to some workers for work well done
What is commission ?
Paid to salespeople as proportion of the value of sales they make
Advantage of commission?
incentive to increase sales