Chapter 15

Question 1

Wage Rate

Answer 1

price paid for the use or services of labor per unit of time

Question 2

Nominal Wage

Answer 2

the amount of money received by a worker per unit of time

Question 3

Real Wage

Answer 3

amount of goods and services a worker can purchase with his or her nominal wage

Question 4

Monopsony

Answer 4

market structure in which there is only a single buyer of a good, service, or revenue

Question 5

Exclusive Unionism

Answer 5

policy, pursued by many craft unions, in which a union first gets employers to agree to hire only union workers and then excludes many workers from joining the union so as to restrict the supply of labor and drive up wages

Question 6

Inclusive Unionism

Answer 6

policy, pursued by industrial unions, in which a union attempts to include every worker in a given industry so as to be able to restrict the entire industry’s labor supply and thereby raise wages

Question 7

Bilateral Monopony

Answer 7

market in which there is a single seller and a single buyer

Question 8

Minimum Wage

Answer 8

lowest wage that employers may legally pay for an hour of work

Question 9

Wage Differentials

Answer 9

difference between the wage received by one worker or group of workers and that received by another worker or group of workers

Question 10

Noncompeting Groups

Answer 10

collections of workers who do not compete with each other for employment because the skill and training of the workers in one group are substantially different from those of the workers in other groups

Question 11

Compensating Differences

Answer 11

differences in the wages received by workers in different jobs to compensate for the non monetary differences between the jobs