Economics: Labour Markets

Flashcards about Labour Markets, covering topics such as competitive labor markets, unions, discrimination policies, wage differentials, and minimum wage effects.

The term ‘__’ applies to:

Blue- and white-collar workers of all varieties, professional people, and owners of small businesses.

Demand for labour is the:

Sum of individual firms’ demand for labor.

In a non-unionized labour market, __.

Employers as a group must pay higher wage rates to obtain more workers.

In a purely competitive labour market, __.

Numerous firms compete with one another in hiring a specific type of labour, and individual firms and workers are wage takers.

Marginal cost of resource (MRC) is the:

Extra cost of employing one extra unit of labour.

Firm's total wage cost is equal to: (0qc * 0wc) = __

0ebc

Union wage advantage refers to:

Higher wages due to unions but dependent on occupation, industry, race and gender.

Losses via feather-bedding and work rules are caused by:

Establishing rules and practices that impede putting the most productive workers in particular jobs.

The shock effect refers to:

Longer-run positive impacts of unions, leading to firms substituting capital for labour and adopting productivity-increasing technologies.

How do unions reduce worker turnover?

The collective voice mechanism provided by unions acts as a substitute for the exit mechanism, reducing worker turnover.

Affirmative action consists of special efforts by employers to __.

Increase employment opportunities for groups that have suffered past discrimination.

One of the opposing views of affirmative action is that it results in __.

Hiring less qualified and experienced workers.

Wage rate refers to:

Price paid per unit of labour services.

Labour earnings are calculated by:

Multiply the number of hours worked by the hourly wage rate.

The greater the productivity of labour, __

The greater the demand for it.

Forms of wages include and .

Direct money payments, fringe benefits.