Course Objectives for Chapter 17: The Markets for Labor and Other Factors of Production


Students should be able to:

      Explain how firms choose the profit-maximizing quantity of workers to employ.

      Explain how people choose the quantity of labor to supply.

      Explain how equilibrium wages are determined in labor markets.

      Use demand and supply analysis to explain how compensating differentials, discrimination, and labor unions cause wages to differ.

      Discuss the role personnel economics can play in helping firms deal with human resources issues.

      Show how equilibrium prices are determined in the markets for capital and natural resources.