The Labour Market Flashcards
What is bilateral monopoly?
Market in which there is a single seller and a single buyer
What is human capital?
The economic value of an individual’s skills, experience, training etc
What is labour exploitation?
Employers benefiting from treating employees unfairly
Marginal physical product (MPP)?
Additional output each unit of labour can produce
What is the marginal productivity theory?
Theory stating demand for labour is derived from MRP
What is marginal revenue productivity?
Additional revenue derived per extra unit of labour
What is monopsony power?
The ability to set prices based on bargaining power
What is the national minimum wage?
The legal minimum hourly wage set by the government
What is negative discrimination?
When employers undervalue the marginal revenue productivity of a worker
What is positive discrimination?
When employers overvalue the marginal revenue productivity of a worker
What is a trade union?
Organisation within or outside a firm campaigning for the rights of the workers
What is the trade union wage gap?
The differences in wages between those in a trade union and those not
What are wage differentials?
Differences in wages of different groups of workers or workers in the same occupation
What is wage discrimination?
Paying an employee lower wages because of their race, genders religion, disability, sexual orientation or some other ‘protected characteristic’
