Labor and Wages

Front

The study of labor is part of the branch of economics called...

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Macroeconomics

Answer explanation

The study of labor is part of macroeconomics. Macroeconomics is the branch of economics that deals with the economy as a whole.

Front

Your health, skills, education and abilities are just some of the things that make up your...

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human capital

Answer explanation

One of the main contributions to productivity comes from investments in human capital, the sum of the skills, abilities, health, and motivation

of people.

Front

Picking fruit requires no skills or training. This type of job falls under the category of...

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unskilled labor

Answer explanation

Those who work primarily with their hands because they lack the training and skills required for other tasks make up the category.

Front

A yard and lawn landscaper requires enough mechanical skill or training to run a lawn mower. This type of job falls under the category of...

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semi-skilled labor

Answer explanation

semiskilled labor—workers with enough mechanical abilities and skills to operate machines that require a minimum amount of training.

Front

A carpenter is able to operate complex machinery and can perform their job with little supervision. This type of job falls under the category of...

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skilled labor

Answer explanation

Skilled labor includes workers who are able to operate complex equipment and can perform their tasks with little supervision.

Front

A computer programmer writing software has the highest levels of education. This type of job falls under the category of...

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professional labor

Answer explanation

Professional labor, or those individuals with the highest level of knowledge-based education and managerial skills.

Front

Doctors do not compete with nurses for jobs. This is because the two careers are in...

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noncompeting labor grades

Answer explanation

Workers in one labor category generally do not compete with those in another category. For example, unskilled workers do not compete directly with semiskilled and skilled laborers. Because of this, it is useful to think of labor as being grouped into noncompeting labor grades, broad categories of labor that do not directly compete with one another because of experience, training, education, and other human capital investments.

Front

If a worker's skills are needed, they will be offered more money by an employer. This idea is known as...

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the traditional theory of wage determination

Answer explanation

Traditional theory of wage determination: The theory states that the supply and demand for a worker’s skills and services determine the wage or salary.

Front

One of the jobs of the union is to bargain with management for wage rates and benefits. This system is known as...

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the theory of negotiated wages

Answer explanation

The theory of negotiated wages states that organized labor’s bargaining strength is a factor that helps determines wages.

Front

Sam has recently graduated from college and has earned a degree. This degree shows the employers that Sam has acquired professional skills and should be paid more for them. This is known as...

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the signaling theory

Answer explanation

Signaling theory: This theory states that employers are willing to pay more for people with certificates, diplomas, degrees, and other indicators or “signals” of superior ability.