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Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
The everyday usage of the word unemployed is usually broad enough to include disguised unemployment, and may include people with no intention of finding a job. For example, a dictionary definition is: "not engaged in a gainful occupation", [7] which is broader than the economic definition.
This provides an incentive for workers to shirk from providing their full effort, called moral hazard. [13] Since it is difficult for the employer to identify the hard-working and the shirking employees, there is no incentive to work hard and productivity falls overall, leading to the hiring of more workers and a lower unemployment rate.
Tournament theory is an efficient way of labour compensation when quantifying output is difficult or expensive, but ranking workers is easy. It is also effective as it provides goals for workers and incentivises hard work so that they may one day attain one of the coveted positions at the top.
The earlier term for the discipline was "political economy", but since the late 19th century, it has commonly been called "economics". [22] The term is ultimately derived from Ancient Greek οἰκονομία (oikonomia) which is a term for the "way (nomos) to run a household (oikos)", or in other words the know-how of an οἰκονομικός (oikonomikos), or "household or homestead manager".
The ideal of a new social order which recognises no national, occupational, or racial distinctions and represents the united economic force and social will of all workers in the world. [2] Similar concepts include the Workers Commonwealth, and the Industrial Commonwealth Coupon clipper A person of leisure with investment income.
Economic history shows a great variety of ways, in which labour is traded and exchanged. The differences show up in the form of: Employment status – a worker could be employed full-time, part-time, or on a casual basis. They could be employed for example temporarily for a specific project only, or on a permanent basis.
James Stuart (1767) authored the first book in English with 'political economy' in its title, explaining it just as: . Economy in general [is] the art of providing for all the wants of a family, so the science of political economy seeks to secure a certain fund of subsistence for all the inhabitants, to obviate every circumstance which may render it precarious; to provide everything necessary ...