Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
supply of labor substitution effect income effect demand for labor marginal physical product of labor marginal revenue product value of the marginal product elasticity of demand for labor economic discrimination segmented labor markets closed shop union shop agency shop right- | The percentage change in the quantity of labor demanded divided by the percentage change in the wage rate. When workers of equal ability are paid different wages or in any other way discriminated against because of race, color, religion, gender, age, national origin, sexual orientation, or disability. Higher wages mean that you can maintain the same standard of living by working fewer hours. The impact on labor supply is generally negative. The additional output a firm receives from employing an added unit of labor (MPPL = ΔQ ÷ ΔL). Labor markets split into separate parts. This leads to different wages paid to different sectors even though both markets are highly competitive. Nonunion hires must join the union within a specified period of time. The amount of time an individual is willing to work at various wage rates. Workers must belong to the union before they can be hired. Employees are not required to join the union, but must pay dues to compensate the union for its services. Laws by the Taft- Demand for labor is derived from the demand for the firm’s product and the productivity of labor. The value of another worker to the firm is equal to the marginal physical product of labor (MPPL) times marginal revenue (MR). Higher wages mean that the value of work has increased, and the opportunity costs of leisure are higher; hence, work is substituted in place of leisure. The value of the marginal product of labor (VMPL) is equal to marginal physical product of labor times price, or MPPL × P. |