Monopsony Flashcards
What is monopsony
When there is only one dominant buyer in the market(buyer meaning supplying and demanding workers eg nhs)
In a monopsony labour market
There is a single dominant employer
In a perfectly competitive labour market
There are lots of employers
What is a national minimum wage
When there are Higher wages for employees but decreased employment
National minimum wage is set above the equilibrium wage
What is ‘trade unions’?
A group of workers who collectively bargain to improve employee welfare
Eg the National Union of Teachers who collectively bargain for shorter hours and higher pay
What is maximum wage
The highest wage employers can hire a worker for
What is occupational immobility
When workers cant move between jobs and occupation as they lack the skills needed
This leads to structural unemployment
What causes labour market failure
Occupational immobility
Geographical immobility
What is geographical immobility
When workers struggle to move between different areas
