tailieunhanh - Lecture Principles of economics - Chapter 12: Labor markets, poverty, and income distribution

This chapter focuses on the labor market and labor market outcomes such as wages and the distribution of income. This is the first of three chapters on the Economics of Public Policy; all three chapters apply the tools developed in Chapters 1 through 11 to a series of public policy issues. | Chapter 12 Labor Markets, Poverty, and Income Distribution McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. Learning Objectives Understand the relationship between wages and the marginal productivity of workers Analyze how wages and employment are determined in competitive labor markets Compare and contrast the various hypotheses economists have proposed to explain earnings differences Discuss recent trends in . income inequality and justifications for income redistribution Describe and analyze some methods used to reduce poverty in the . The Economic Value of Work Individual income vary widely Comparable skills seem to earn different incomes Economics analysis applies to labor markets Equilibrium wage and quantity are determined by supply of and demand for a each category of labor Labor categories include unskilled, skilled, managers, and so on Changes in supply and demand will change the equilibrium wage and quantity Mackintosh Pottery | Chapter 12 Labor Markets, Poverty, and Income Distribution McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. Learning Objectives Understand the relationship between wages and the marginal productivity of workers Analyze how wages and employment are determined in competitive labor markets Compare and contrast the various hypotheses economists have proposed to explain earnings differences Discuss recent trends in . income inequality and justifications for income redistribution Describe and analyze some methods used to reduce poverty in the . The Economic Value of Work Individual income vary widely Comparable skills seem to earn different incomes Economics analysis applies to labor markets Equilibrium wage and quantity are determined by supply of and demand for a each category of labor Labor categories include unskilled, skilled, managers, and so on Changes in supply and demand will change the equilibrium wage and quantity Mackintosh Pottery Works Pottery uses free clay and labor Selling price is $ per piece Handling costs are $ per piece Rennie and Laura each work full time at potting Rennie delivers 100 pots per week and Laura delivers 120 Rennie earns $100 and Laura earns $120 per week If Mackintosh paid less than $1 per pot Another pottery company could afford to pay more Rennie and Laura leave to earn more One reason for different earnings is differences in output per person The Labor Market Marginal product of labor (MP) The additional output a firm gets by employing one additional unit of labor Value of marginal product of labor (VMP) The dollar value of the additional output a firm gets by employing one additional unit of labor In a competitive market, wage = VMP Mackintosh Pottery Works example Potters' Production Value of Marginal Product Marginal product of labor multiplied times the net price of each unit sold ($1) Rennie’s VMP is $100 Laura’s VMP is $120 In a competitive market each worker is paid the

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Labor markets
• Income distribution
• Economic value
• Marginal product of labor
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
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• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
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• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy