chapter 9 for test Flashcards
1
Q
factors that create different wage rates
A
different skills educational qualifications possession of innate talent negotiating strength of TUs nature/conditions of the job
2
Q
advantages of increasing the minimum wage
A
increased standard of living
increased aggregate demand
encourage employment
wage rates may increase overall
3
Q
MRP
A
marginal revenue productivity
the extra revenue earned when an additional unit of a factor of production is employed
4
Q
calculating MRP of labour
A
price x MPP
5
Q
when does a firm maximise profit
A
when the wage rate = MRP
