Th3.5: Wage Determination in Competitive and Non-Competitive Markets Flashcards

1
Q

What things do wage rates differ due to?

A

age, education, training, work experience, skill/talent, sex and ethnic background - the last two being illegal but still significant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

For the highest paid workers there will be…

A

a low supply and high MRP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does the immobility of labour mean?

A

that there may be excess supply in one area/occupation, causing low wages, and not enough workers in another, meaning high wages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The lower the elasticity of supply/demand…

A

the greater the change in the real wage rate and the smaller the change in employment as a result of change in demand/supply for labour - the effect will also depend on the size of the change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly