8 - the labour market: wage determination

Question 1

economic wealth

Answer 1

the payment received by a factor of production over and above that which is needed to keep it in its present occupation

Question 2

transfer earnings

Answer 2

the minimum payment needed to keep a factor of production in its present use

Question 3

trade union

Answer 3

an organisation of workers who join together to further their own interests

Question 4

trade union mark-up

Answer 4

the addition to wages secured by members of a trade union, compared to what they would earn

Question 5

monopsonist

Answer 5

a single, dominant buyer

Question 6

wage differentials

Answer 6

differences in wages arising between individuals, occupations, industries, firms and regions

Question 7

discrimation

Answer 7

where groups of workers are treated differently to other workers in the same job regarding pay and employment

Question 8

labour market failure

Answer 8

where the free market fails to achieve an efficient allocation of resources in the labour market

Question 9

negative discrimination

Answer 9

when a group of workers is treated less favourably than others

Question 10

positive discrimination

Answer 10

when a group of workers are treated more favourably than others