23157973
Description
Flashcards by Sophia Lynch, updated more than 1 year ago
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Created by Sophia Lynch
over 4 years ago
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| Question | Answer |
| Relatively high wages indicate that... | 1. The goods produced are highly valued 2. People will be attracted to train in that industry |
| Wage differentials are critical for resource allocation because ... | They encourage resources to work in unwanted industries and allocate resources regarding their talent |
| What are 'compensating differentials'? | Costs involved i.e. training requirements/dangerous work |
| Gini Coefficient = ? | A ------- A + B |
| Gini Coefficient: What does it mean if the area 'A' is large? | 1. Unequal income distribution 2. Bigger Gini Coefficient |
| What does the 'Gini Coefficient' measure? | The extent of income or wealth inequality |
| What is the goal of 'Utilitarianism'? | To maximise 'total utility' usually through income redistribution Left-wing |
| What does 'Libertarianism' believe? | Individuals should all have an equal opportunity to succeed. They must do so by taking advantage of the opportunities given to them. Right-wing |
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