1.6.3 The determination of relative wage rates and levels of employment in competitive and non-competitive markets

    Cards (167)

    • What are relative wage rates?
      Wages compared across occupations
    • What is a non-competitive labour market?
      Few buyers or sellers
    • Equilibrium wage rates in competitive markets are determined by the intersection of demand and supply
    • Non-competitive labour market structures include monopolies and oligopolies.
      True
    • What is compared in competitive and non-competitive labour markets?
      Wage rates and employment levels
    • Government regulations can influence wages and employment in the labour market
    • A higher demand for workers in a specific occupation leads to higher relative wage rates
    • In a competitive labour market, wages are determined by the interaction of supply and demand.

      True
    • What is the key difference in wage determination between competitive and non-competitive labour markets?
      Market power vs. supply and demand
    • Relative wage rates are influenced by the interaction of supply and demand
    • In a non-competitive labour market, wages are influenced by market power
    • Relative wage rates are determined by the interaction of supply and demand for labour.

      True
    • What do relative wage rates define in the labour market?
      Wages of different occupations compared
    • Match the wage rate type with its definition:
      Relative Wage Rates ↔️ Wages of different occupations compared
      Absolute Wage Rates ↔️ Actual monetary amounts paid
    • In a non-competitive labour market, there are many buyers and sellers.
      False
    • In a non-competitive labour market, wages are influenced by the market power of either employers or workers
    • Match the labour market type with its example:
      Competitive ↔️ Retail, fast food, entry-level jobs
      Non-Competitive ↔️ Unionized industries, specialized professions
    • What are the determinants of the supply of labour in a competitive market?
      Wage rates, job satisfaction
    • The equilibrium wage is the wage rate at which the quantity of labour demanded equals the quantity of labour supplied
    • In a competitive labour market, employment levels are influenced by both supply and demand.

      True
    • Match the labour market factor with its impact on employment:
      Increased Productivity ↔️ Higher employment
      Increased Supply ↔️ Lower wage rates
    • What do relative wage rates help analyze in the labour market?
      Wage differentials
    • A competitive labour market is one where there are many buyers (employers) and many sellers (workers) of labour
    • What is the primary difference between a competitive and a non-competitive labour market?
      Market power
    • In a non-competitive labour market, wages are influenced by market power rather than solely by supply and demand.

      True
    • Equilibrium wage rates in competitive markets are determined by the interaction of labour supply and demand
    • What is the primary effect of a monopoly in the labour market on wages?
      Lower wages
    • An oligopoly in the labour market may lead to wage stagnation or lower wage growth for workers.

      True
    • How many employers are in a competitive labour market?
      Many
    • Competitive labour markets have higher employment levels compared to monopolies
      True
    • What type of wage disparity exists in a competitive labour market?
      Minimal
    • A monopoly employer can exploit market power to set wages below competitive levels
      True
    • Match the labor market structure with its key characteristic:
      Monopoly ↔️ Single employer
      Oligopoly ↔️ Few dominant employers
      Competitive ↔️ Many employers and workers
    • Non-competitive labor markets result in greater wage disparities compared to competitive markets

      True
    • Relative wage rates compare wages across different occupations
    • Match the wage rate type with its definition:
      Relative wage rate ↔️ Wages of different occupations compared
      Absolute wage rate ↔️ Actual monetary amounts paid
    • In a competitive labor market, wages reflect worker skills and education

      True
    • Unions in non-competitive labor markets can negotiate wages not fully dictated by market forces
      True
    • Match the wage determination method with the labor market type:
      Influenced by market power ↔️ Non-Competitive
      Determined by supply and demand ↔️ Competitive
    • The labor demand curve slopes downward due to diminishing returns
      True