4.1.6 Flashcards

1
Q
define MRPL
(Marginal Revenue Productivity of Labour)
A

extra revenue generated when an additional worker is employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

equation of MRPL?

A

MPPL(Marginal Physical Product of Labour) (+ Price) or (Marginal Revenue) = MRPL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

why does MRPL curve shift/increase?

A

increase in productivity (e.g. tech, training, specialisation, division of labour)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

why could the MRPL shift to the left?

A

Technology could decrease demand for workers and their labour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what affects the elasticity of demand for labour

A

the elasticity of demand for products
how easy it is to substitute another factor of production for labour
the proportion of labour costs to total costs of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

define monopsony

A

market with only 1 buyer

buyer has buying + wage setting power over potential employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

examples of monopsony employers?

A
NHS
Armed Forces
Retailers 
Supermarkets 
Local councils 
Big Out-Sourcing Businesses e.g. G4S, capita
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

define collective bargaining

A

negotiation between employees and employers to help make agreements on things like salaries/conditions/benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

define trade union

A

association of workers whose primary objective is to promote its members and their rights/interests

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what’s closed shop?

A

you can only work for a certain employer if you join a certain trade union

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what’s a single union agreement?

A

agreement between an employer and a union so that the union will represent all the workers at a particular workplace

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what’s the benefits trap?

A

when some people don’t work and find it better to live off benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

advantages of NMW

A

greater welfare for workers
reduces income inequality
makes labour more productive
gives incentive to work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

disadvantages of NMW

A

increasing NMW risks unemployment increase

If NMW is above W*/equilibrium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

define NMW

A

legally protected pay floor in labour markets

employers can’t pay below it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

define discrimination

A

the valuation in the market-place of personal characteristics of the worker that are unrelated to worker productivity

17
Q

what are the conditions for discrimination?

A
  • be able to identify diff. groups of workers supplying the same type of labour
  • the group doesn’t have a lot of knowledge in the Labour Market
  • it’s not easy for the group to go to another employer
18
Q

what are the problems with discrimination?

A
  • causes deadweight welfare loss -> certain workers unemployed
  • if forms have monopoly/monopsony power -> discr. lets them cut costs but get more profit at workers’ expense
  • in competitive markets -> firms experience higher costs which increases prices for consumers
  • causes injustice/alienation -> strikes
19
Q

define MPPL (Marginal Physical Product of Labour)

A

extra output that an extra worker produces

20
Q

MCL (Marginal Cost of Labour)

A

cost of hiring 1 extra worker