8 - the labour market: wage determination

Question 1

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

Answer 1

economic wealth

Question 2

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

Answer 2

transfer earnings

Question 3

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

Answer 3

trade union

Question 4

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

Answer 4

trade union mark-up

Question 5

a single, dominant buyer

Answer 5

monopsonist

Question 6

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

Answer 6

wage differentials

Question 7

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

Answer 7

discrimation

Question 8

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

Answer 8

labour market failure

Question 9

when a group of workers is treated less favourably than others

Answer 9

negative discrimination

Question 10

when a group of workers are treated more favourably than others

Answer 10

positive discrimination