Diminishing marginal productivity
When additional workers result in smaller amounts of added production
Injunction
Court order to stop an activity
Closed shop
When a contract required workers to join a union before they could be employed
Wagner act
Guarantees workers the right to organize a union
Craft union
Labor organization made of workers who all have the same skill
Industrial union
Labor organization made up of workers who all work in the same industry
Equilibrium wage rate
The wage rate that results in the number of individuals who are willing to work being equal to the number of jobs offered by firms
Clayton act
Said that the Sherman act was not to be used against labor organizations
Right-to-work-law
Prevents workers from being required to join a union
Derived demand
Demand that depends on the demand for the final product (labor, for example)
Taft-Hartley act
Gave the President of the U.S. power to request a court order to force striking workers to return to work
Marginal physical product
Additional products produced when another worker is hired
Labor force participation rate
Percentage of people 16 years or older who are working or looking for work
Money wages
The number of dollars a worker earns
Real wages
The quantity of products workers are able to buy with the dollars they earn
Diminishing returns
Explains why adding more workers and raw materials won’t always increase production
Labor unions
Organizations that attempt to improve working conditions of their members through collective bargaining