1.6 The labour market

Question 1

Marginal revenue productivity

Answer 1

addition to revenue from employing one more FOP (labour)

Question 2

Marginal Physical Product

Answer 2

addition to output from employing one more FOP

Question 3

elasticity of demand of labour

Answer 3

%change in labour demanded from %change in wage rate

Question 4

elasticity of supply of labour

Answer 4

%change in laboursupplied from %change in wage rate

Question 5

wage differentials

Answer 5

differences in wages between people/jobs/region

Question 6

monopsony

Answer 6

single dominant buyer e.g. army

Question 7

trade union

Answer 7

group of workers that bargains employers to increase wages

Question 8

national minimum wage

Answer 8

increase earnings of the low paid

Question 9

negative discriminiation

Answer 9

employers treat a particular group less favourably than others in terms of pay and employment levels

Question 10

positive discrimination

Answer 10

employers treat a particular group more favourably than others in terms of pay and employment levels