The Interaction of Labour Markets

Question 1

Define Wage Differentials

Answer 1

This is when workers in the same job are paid different wages

Question 2

6 reasons for wage differentials

Answer 2

Education

Skills, Qualifications and training

Pay Gaps

Wages and Skills

Gender

Discrimination

Question 3

Define monopsony Power

Answer 3

Where there is only one buyer of labour in the market

Question 4

Draw a monopsony diagram

Question 5

What are the impacts of a monopsony employer

Answer 5

Employees lose out due to low wages:
This is because with only one buyer they can exploit the supplier through low wages since they have nowhere else to go

Employees may become less motivated and decrease productivity and efficiency

Question 6

Define Trade Unions

Answer 6

Organisations that aim to protect workers, secure jobs, improve working conditions and achieve fair wages

Question 7

Draw a Trade Union diagram

Question 8

Explain the discontinuation in a Trade Union Diagram