Ch40 Labor Market Forces and Gov't Intervention

Front

What is a derived demand?

Back

A derived demand is where the demand for a good or service such as labour depends on the use that is made from it in the production of other goods and services.

Front

What is the marginal revenue product of labour?

Back

The marginal revenue product of labour is the addition to total revenue from employing one more unit of labour.

Front

What factors influence the demand for labour in a firm or occupation?

Back

The demand for labour depends on factors including the wage rate or earnings, the marginal productivity of labour, and the demand for the product.

Front

What factors influence the supply of labour in an occupation?

Back

The supply of labour depends on monetary reasons such as the weekly wage or earnings, and non-monetary reasons such as hours of work, job security, job satisfaction, and workplace security.

Front

How is the wage rate determined in a perfect market?

Back

In a perfect market, the wage rate is determined where the demand for labour and the supply of labour are equal.

Front

How is the wage rate determined in a imperfect market?

Back

In an imperfect market, the wage rate is determined by profit maximizing in monopsony or influenced by trade union.

Front

What are transfer earnings and economic rent?

Back

Transfer earnings is the minimum payment necessary to keep someone in their present occupation. Economic rent is any additional payment above transfer earnings.

Front

What is the impact of an increase in labour productivity?

Back

An increase in labour productivity means more goods and services can be produced from the same amount of resources, enhancing Malaysia’s price competitiveness relative to its trading rivals.

Front

What is monopsony?

Back

The only buyer in a market, e.g. the only employer who demand a certain type of worker in the labor market.