Economics

• Labor


  An essential way of boosting the sense of usefulness and belonging of people, and supplying financial support
• Employment


  • Central to other various aspects of life, such as being a system of socialization, a means of social interaction, and a basis of individual identity
• A job can be seen as the cornerstone of social organization and an essential pillar of an individual's existence
• Labor Market


  A major component of every economy in commodities and services markets, consisting of the supply and demand for labor
• Labor Demand


  The amount of labor that employers wish to hire at a given time, illustrated by the labor demand curve
• Labor Demand Curve


  • Shows the negative relationship between wage rate and labor quantity, where when the wage rate is low, employers are encouraged to hire more workers
• Labor Supply


  The amount of labor offered for hire within a given period, measured by the total number of hours workers are willing to work at a given wage rate
• Labor Supply Curve


  • Shows the positive relationship between wage rate and labor quantity, where when the wage rate is high, more people are willing to work
• Labor Market Equilibrium


  The point at which labor demand and labor supply converge and intersect
• Wages


  Opportunity costs of engaging in leisure, where fewer people will work if the wage rate is low
• Commodities


  Commercially-available goods and services that are compatible with other commodities, used primarily in creating other products, doing other services, or consumed in themselves
• Basic Commodities


  Products that serve as important needs for consumers' lives and survival
• Prime Commodities


  Products that are not considered to be basic necessities but are necessary to consumers
• Unemployment


  Occurs when people are in between jobs or do not have work and are actively seeking it, where high unemployment cannot persist in the long run
• Employment


  An arrangement where the employee will provide services for the employer, and the service shall be compensated
• According to the Malthusian Theory, the population grows at a faster rate than commodities, and as the population rises, the resulting increase in demand creates a strain on supply growth
• Wage push inflation


  An average spike in the price of commodities due to an increase in income, where as the overall price on goods and services rises, there is a need for higher wages to offset the higher prices
• Commodities are commercially-available goods and services that are compatible with other commodities. Basic commodities are products that are important needs for the consumers' lives and survival. Prime commodities are products that are not considered to be basic necessities but are needed by the consumers.
• There are different factors that can affect the price of basic commodities. These factors are employment, unemployment, population, and wages. Together, all of these factors have a long-lasting influence on commodity prices.
• Movement


  A change in quantity given a change in price
• Shift


  • Caused by non-price determinants or factors
  • When either demand or supply shifts, quantity demanded or supplied changes for every price
• Determinants of Demand


  • Tastes
  • Number of buyers
  • Income
  • Prices of related goods
  • Consumer expectations
• Tastes


  Preference is the order of an individual's choices and alternatives based on their relative utility (satisfaction)
• Number of Buyers


  An increase causes demand to increase, a reduction causes demand to decrease
• Normal good


  Demand increases as income increases
• Inferior good


  Demand varies inversely with income
• Prices of Related Goods

  • Substitutes
  • Complements
  • Unrelated Goods
• Substitutes


  Goods demanded or consumed in place of another good
• Complements


  Goods demanded or consumed along with other goods
• Unrelated Goods


  Demand is independent of the price of other goods
• Demand shifts right


  Equilibrium quantity increases, equilibrium price increases
• Demand shifts left


  Equilibrium quantity decreases, equilibrium price decreases
• Determinants of Supply


  • Resource prices
  • Technology
  • Taxes and subsidies
  • Prices of other goods
  • Number of producers
  • Producer expectations
• Cost of Input


  Higher costs means lower profits and producers will supply less, lower costs means producers will supply more
• Taxes


  Compulsory contributions to the government
• Subsidies


  Special grants by the government in financial aid, tax exemptions, or privileges
• If the price of one good is high in the market, it encourages producers to make it more than other goods. But if the price of the other good is higher, the producer will change their production and create more of the other good
• More producers


  Overall supply increases, supply curve shifts right
• Less producers


  Overall supply decreases, supply curve shifts left
• Expectations about a product's future price affect the willingness and ability of a producer to supply a product. However, it isn't easy to predict how producers will react to an increase in the future price