Monopsony 3.4.6

Question 1

Define a Trade Union

Answer 1

A group who bargain to improve employee welfare

Question 2

Define a Monopsony

Answer 2

One buyer in the market

Question 3

What 3 ways are used to combat Monopsonys

Answer 3

Minimum Wages
Trade unions
Maximum Wages

Question 4

2 examples of labour market failure

Answer 4

Occupational Immobility
Geographical Immobility

Question 5

Define occupational immobility and what it leads to

Answer 5

When workers cant move between jobs as they lack the skills needed - leads to structural unemployment

Question 6

How will the government intervene to fix occupational immobility

Answer 6

Education
Training
Appreticeships

Question 7

Define geographical immobility

Answer 7

When workers cant move between different areas

Question 8

How will the government intervene to fix geographical immobility

Answer 8

relocation subsidies
transport
hs2 - trains

Question 9

Monopsony Impacts on consumers

Answer 9

Lower prices
Lower quantity

Question 10

Monopsony Impacts on firms

Answer 10

Higher profits

Question 11

Monopsony Impacts on suppliers

Answer 11

Driven out market
Contracts