II. Translate the sentences paying attention to the italicized words:

1. Tax and insurance are deducted from your wages. 2. The staff have agreed to a voluntary wage freeze. 3. We have two wage-earners in the family. 4. If wages were to rise by 15% from 100 per week and the rate of inflation was 10%, the real wage would have risen by 5%. 5. Wages council is a board of workers’ and employers’ representatives determining wages where there is no collective bargaining. 6. Money wages are expressed in money terms only, i.e. without taking inflation into account. 7. Living (minimum) wage is a wage that affords the means of normal subsistence. 8. Wages are paid on Fridays.

1. III. Fill in the blanks below with the most appropriate terms from

the list:

the traditional theory of wage determination; professional managers; wages; the collective bargaining process; supply and demand; labour; the cost of living; wage rate; unions; work.

1. The theory that uses the tools of __________ to explain differences in wage rates is called _________ . 2. _________ generally are scarcer than ditch diggers or baby sitters. 3. The higher the level of skills, or grade of ________ , the higher the average yearly ___________ . 4. At times, wages are determined by the influence of organized labour and ___________ . 5. Some unproductive workers, for example, may receive high ____________ because of family ties or political influence. 6. When negotiating for wages, __________ want to know the wage rates in other plants for the same kind of ________ and what changes have taken place or will take place in the future in __________ .

IV. Match each term in Column a with its definition in Column b:

Column A Column B

1. labour	a. A standard amount of pay given for work performed.
2. labour force	b. The lowest legal wage an employer can pay.
3. wages	c. Associations of workers formed to promote the interests of their members.
4. wage rate	d. The human effort required to produce goods and services.
5. labour/trade unions	e. Cost of goods and services needed for an average standard of living.
6. traditional theory of wage determination	f. Negotiations with management by a union to prepare a labour contract.
7. labour market	g. The theory that uses the tools of supply and demand to explain differences in wage rates.
8. collective bargaining	h. Individuals, 16 years of age or older, working or looking for work.
9. minimum wage	i. The price paid for the use of labour.
10. cost of living	j. The market that determines who has jobs and the rate of pay for a particular job.

V. Define which of the following items best completes the statement:

1. In the future, businesses hiring new employees are likely to stress

a. gender.

b. education.

c. race.

d. physical fitness.

2. A union of workers, all of whom are electricians, is an example of

a. an industrial union.

b. a craft union.

c. a business union.

d. a union local.

3. The demand for labour will decrease in response to which of

the following?

a. Increased productivity.

b. Better training of all labourers.

c. A decrease in the supply of labour.

e. An increase in the supply of labour.

VI. Complete the following sentences:

1. The theory that uses the tools of supply and demand to explain differences in wage rates is called ... . 2. When the level of supply is large in relation to demand ... . 3. When the level of supply is low in relation to demand ... . 4. The higher the level of skills or grade of labour ... . 5. Some unproductive workers may receive ... . 6. Some highly skilled workers may receive ... . 7. At times, wages are determined not by supply and demand but ... . 8. Unions do not try to get higher wages for their members on the grounds ... . 9. When negotiating for wages, unions want to know ... .