Learning Objectives By the end of this section, you will be able to: Most Americans would be outraged if a law prevented them from moving to another city or another state. However, when the conversation turns to crossing national borders…
Learning Objectives By the end of this section, you will be able to: Barriers to equitable participation in the labor market drive down economic growth. When certain populations are underrepresented, underpaid, or mistreated in a labor market or industry, the…
Learning Objectives By the end of this section, you will be able to explain: What happens when there is market power on both sides of the labor market, in other words, when a union meets a monopsony? Economists call such…
Learning Objectives By the end of this section, you will be able to: A labor union is an organization of workers that negotiates with employers over wages and working conditions. A labor union seeks to change the balance of power…
Learning Objectives By the end of this section, you will be able to: In the chapters on market structure, we observed that while economists use the theory of perfect competition as an ideal case of market structure, there are very…
Learning Objectives By the end of this section, you will be able to: Clear It Up What is the labor market? The labor market is the term that economists use for all the different markets for labor. There is no…
Figure 14.1 What determines incomes? In the U.S., income is primarily based on one’s value to an employer, which depends in part on education. (Credit: modification of work by AFL-CIO America’s Unions/Flickr Creative Commons and COD Newsroom/Flickr Creative Commons) Chapter Objectives In this…
13.1 Investments in Innovation Competition creates pressure to innovate. However, if one can easily copy new inventions, then the original inventor loses the incentive to invest further in research and development. New technology often has positive externalities; that is, there are…
Learning Objectives By the end of this section, you will be able to: Even though new technology creates positive externalities so that perhaps one-half or two-thirds of the social benefit of new inventions spills over to others, the inventor still…
Learning Objectives By the end of this section, you will be able to: A number of different government policies can increase the incentives to innovate, including: guaranteeing intellectual property rights, government assistance with the costs of research and development, and…