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Introduction To Labor Economics
Introduction To Labor Economics
Economics
Chapter 1
The study of labor economics requires a
solid foundation in microeconomics.
scarcity
Fundamental positive economic
concepts
scarcity
rational self-interest
Fundamental positive economic
concepts
scarcity
rational self-interest
utility maximization
Fundamental positive economic
concepts
scarcity
rational self-interest
utility maximization
profit maximization
Normative economics
interpersonal comparisons of utility are
impossible
Normative economics
interpersonal comparisons of utility are
impossible
Pareto improvement
Normative economics
interpersonal comparisons of utility are
impossible
Pareto improvement
Pareto efficiency (aka Pareto optimality)
Normative economics
interpersonal comparisons of utility are
impossible
Pareto improvement
Pareto efficiency (aka Pareto optimality)
problems with the Pareto optimality
criterion
Markets and Pareto optimality
under ideal conditions, markets result in
Pareto efficient outcomes
Types of Market failure
imperfect information,
Types of Market failure
imperfect information,
transaction barriers,
Types of Market failure
imperfect information,
transaction barriers,
price distortions,
Types of Market failure
imperfect information,
transaction barriers,
price distortions,
the nonexistence of markets when
externalities are present,
Types of Market failure
imperfect information,
transaction barriers,
price distortions,
the nonexistence of markets when
externalities are present,
public goods,
Types of Market failure
imperfect information,
transaction barriers,
price distortions,
the nonexistence of markets when
externalities are present,
public goods, and
capital market imperfections.
Equity vs. Efficiency
Attempts to make market outcomes
more equitable often results in the loss
of economic efficiency.