(6) Labour Markets

Question 1

Marginal physical product (mpp)

Answer 1

Additional output for each unit of labour can produce

Question 2

Marginal productivity theory

Answer 2

States the demand for labour is dependent on the marginal revenue product(mrp)

Question 3

Marginal revenue productivity (mrp)

Answer 3

Additional revenue derived per extra unit of labour

Question 4

Monopsony power

Answer 4

The ability to set prices based on bargaining power

Question 5

National minimum wage

Answer 5

The legal minimum hourly wage set by a government. Age dependent

Question 6

Negative discrimination

Answer 6

When employees uundervalue the marginal revenue productivity of a worker

Question 7

Positive discrimination

Answer 7

When employees overvalue the marginal prevents productivity of a worker

Question 8

Trade union

Answer 8

Organisation campaigning for the rights for workers

Question 9

Trade union wage gap

Answer 9

The difference in wages between those in a trade union and those not in a trade union: indicates TU power

Question 10

Wage differentials

Answer 10

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

Question 11

Wage discrimination

Answer 11

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

Question 12

Labour is a ….. demand

Answer 12

Derrived