7906221
| Question | Answer |
| Derived demand | Demand for a good or factor of production, not wanted for its own sake, which is a consequence of the demand for something else. |
| Marginal physical product of labour | The addition to a firm's total output brought about by employing one more worker. |
| Marginal revenue product of labour | The money value of the addition to a firm's total output brought about by employing one more worker. |
| Elasticity of demand for labour | Proportionate change in demand for labour following a change in the wage rate. |
| Substitution effect | A higher hourly wage rate makes work more attractive than leisure, so workers substitute labour for leisure. |
| Income effect | An increase in the hourly wage rate means higher real income, and if leisure is a normal good, the quantity of leisure demanded goes up which means a reduction in the quantity of labour supplied. |
| Net advantage | The sum of the monetary and non-monetary benefits of working. |
| Elasticity of supply of labour | Proportionate change in the supply of labour following a change in the wage rate. |
| Average cost of labour | Total wage costs divided by the number of workers employed. |
| Marginal cost of labour | The addition to a firm's total cost of production resulting from employing one more worker. |
| Monopsony | There is only one buyer in a market. |
| Monopsony power | The market power exercised in a market by the buyer of a good or the services of a factor production such as labour, even though the firm is not a pure monopsonist. |
| Occupational immobility of labour | When workers are unwilling or unable to move from one job type to another. |
| Geographical immobility of labour | When workers are unwilling or unable to move from one area to another in search of work. |
| Trade union | A group of workers who join together to maintain and improve their conditions of employment, including their pay. |
| Collective bargaining | A process by which wage rates and other conditions of work are negotiated and agreed upon by a union or union with an employer or employers. |
| National minimum wage | A minimum wage or wage rate that must by law be paid to employees, though in many labour markets the wage rate paid by employers is above the national minimum wage. |
| National living wage | An adult wage rate, set by the UK government, which all employers must pay from 2016 onward, and which has replaced the adult national minimum wage rate. |
| Wage discrimination | Paying different workers different wage rates for doing the same job. |
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