Chapter 8 The Labour Market Wage Determination

Question 0

Transfer earnings

Answer 0

The minimum payment needed to keep a factor of production in use

Question 1

Economic rent

Answer 1

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

Question 2

Trade unions

Answer 2

A trade union seeks to further the interests of jars members through a process called collective bargaining, with employers.

Question 3

Monopsonist

Answer 3

A single buyer

Question 4

Wage differentials

Answer 4

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

Question 5

Discrimination

Answer 5

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

Question 6

Labour market failure

Answer 6

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

Question 7

Positive discrimination

Answer 7

When a group of workers are treated more favourably than others.