2. Supply and Demand in Labor Markets/ Labor Relations (10 questions)
* Demand Labor shifters: change in demand for a product, expectations about the economy, and changes in productivity of labor.
* Supply Labor Shifters: immigrations and population growth, migration, wages in other professions, number of hours people are willing to work, nonwage income, amenities.
* Labor is a derived demand; it is based on the demand for products or services.
* Marginal Product of labor- how much each additional worker contributes; decreases as workers increase.
* Marginal Revenue Product (MRP)- marginal product x price of product
* Hire workers until marginal revenue product= wage rate
* Where profits are maximized.
* Cost and benefits of unions:
* Higher wages
* Voice options
* Lower turnover
* Lower profit
* Employees are more productive.
* Membership in unions has declined because the government has taken over certain things like safety and they don’t accommodate the types of jobs available.
* Government Regulations
* Minimum wage
* Overtime laws
* Discrimination/affirmative Action
* Taxes & Subsidies
* Government spending.
* Why intervene?
* When the market provides an inefficient outcome when left to its own devices
* When market solution offends our values
3. Employment Issues (3)
* Person doesn’t have a job
* Person would be able to take the job if offered
* Looked for work in previous 4 months
* Labor force- al non institutionalized people over the age of 16 who are either working for pay or actively seeking paid employment.
* Unemployment rate
* # employed/ labor force
* Labor force participation rate:
* Labor force/adult population
* Types of Unemployment
* Frictional- normal; temporary... [continues]
Cite This Essay
(2012, 05). Dfadf. StudyMode.com. Retrieved 05, 2012, from http://www.studymode.com/essays/Dfadf-1014028.html
"Dfadf" StudyMode.com. 05 2012. 2012. 05 2012 <http://www.studymode.com/essays/Dfadf-1014028.html>.
- MLA 7
"Dfadf." StudyMode.com. StudyMode.com, 05 2012. Web. 05 2012. <http://www.studymode.com/essays/Dfadf-1014028.html>.
"Dfadf." StudyMode.com. 05, 2012. Accessed 05, 2012. http://www.studymode.com/essays/Dfadf-1014028.html.