1.6 the labour market

Question 1

bilateral monopoly

Answer 1

market in which there is a single seller and a single buyer

Question 2

human capital

Answer 2

the economic value of an individual’s skills, experience, training, etc.

Question 3

labour exploitation

Answer 3

employers benefitting off of treating employees unfairly

Question 4

marginal physical product (MPP)

Answer 4

additional output each unit of labour can produce

Question 5

marginal productivity theory

Answer 5

theory stating demand for labour is derived from MRP

Question 6

marginal revenue productivity (MRP)

Answer 6

additional revenue derived per extra unit of labour

Question 7

monopsony power

Answer 7

the ability to set prices based on bargaining power

Question 8

national minimum wage (NMW)

Answer 8

the legal minimum hourly wage set by the government

is age dependent

Question 9

negative discrimination

Answer 9

when employers undervalue the marginal revenue productivity of a worker

Question 10

positive discrimination

Answer 10

when employers overvalue the marginal productivity of a worker

Question 11

trade union

Answer 11

organisation in/out of a firm campaigning for the rights of workers

Question 12

trade union wage gap

Answer 12

the difference in wages between those in a trade union and those not in a trade union; an indicator of trade union power

Question 13

wage differentials

Answer 13

differences in wages of different groups of workers, or workers in the same occupation

Question 14

wage discrimination

Answer 14

paying females and/or those of ethnic minorities less for the same job