https://padlet.com/ericaorians/cuwzdw5ndhudip4h Template en-us 2022-02-28 17:04:50 UTC 2022-03-15 02:36:02 UTC hello@padlet.com ericaorians https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2069898950 2022-02-28 17:04:50 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2069898950 ericaorians https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2069898951 2022-02-28 17:04:50 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2069898951 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084976230 2022-03-08 23:13:09 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084976230 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084981053 In most other markets, we think of businesses as suppliers and ordinary folks as the buyers. But in a labor market, the positions are swapped. As a worker, you're on the supply side, looking to sell your labor for the highest wages you can get. And businesses are in the demand side, looking to hire the best workers they can find at the lowest possible price.

The labor market is like any other market, except the units on the price and quantity axes are a bit different. The price of an hour of a professional's time is their hourly wage. And the quantities an employer buys are their hours of work. 

An upward-sloping labor supply curve is just the law of supply, applied to the labor market. Similarly, the downward-sloping labor demand curve is just the law of demand, applied to the labor market. Wages and employment are determined by the intersection of the two curves. ]]> 2022-03-08 23:18:03 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084981053 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084988981 The extra production that occurs from hiring an extra worker. Recall that most businesses experience diminishing marginal product- meaning that at some point, hiring additional workers yields smaller and smaller increases in output]]> 2022-03-08 23:27:20 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084988981 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084998341 Measures the marginal revenue from hiring an additional worker. The marginal revenue product is equal to the marginal product of labor multiplied by the price of that product. That is, the extra revenue produced by hiring an additional worker. A company's labor demand curve is the same as its marginal revenue product curve. ]]> 2022-03-08 23:38:45 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2084998341 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2085001541 Hire additional workers as long as their marginal revenue product is greater than or equal to the wage. That is, hire until wage = marginal revenue product ]]> 2022-03-08 23:42:18 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2085001541 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2085006580 2022-03-08 23:48:25 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2085006580 rebeccawisniewski1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086136346 2022-03-09 14:09:26 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086136346 rebeccawisniewski1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086152863 2022-03-09 14:17:01 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086152863 rebeccawisniewski1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086183750 Measures the marginal revenue from hiring an additional worker.

MRP_L = MP_L x P
Marginal Revenue Product _{of Labor}
= Marginal Product _{of Labor} 
x Price of Product

Labor Demand Curve = Marginal Revenue Product Curve

Labor demand curve downward sloping because of diminishing marginal product]]> 2022-03-09 14:30:32 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086183750 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086228628 The demand for an input derives from the demand for the stuff the input produces. ]]> 2022-03-09 14:49:22 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086228628 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086250299 Scale Effect: When the price of capital goods (or any of your inputs) declines, your business can produce output more cheaply, so at any given price, you will sell a larger quantity. That is, you'll produce ate a larger scale, which may require more workers, increasing your business's labor demand. 

Substitution Effect: There are many tasks that can be done by either workers or machines. And so when the price of these machines falls, the demand for workers to do tasks that can be substituted for machines decreases. 

Both effects shift labor demand. Which force dominates determines whether labor and capital are complements or substitutes. If the scale effect dominates then labor and capital are complements, so a decrease in the price of capital will lead to a rightward shift of labor demand. If the substitution effect dominates then labor and capital are substitutes, so a decrease in the price of capital will lead to a leftward shift of labor demand. ]]> 2022-03-09 14:59:06 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086250299 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086277132 1. Changes in demand for a product 
2. Changes in the price of capital 
3. Better management techniques and productivity gains 
4. Nonwage benefits, subsidies, and taxes ]]> 2022-03-09 15:10:54 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086277132 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086326447 The time you spend working in the market. Market labor supply depends on: 1) how many people decide to work, 2) how many hours existing workers put in, and 3) which occupations people choose. ]]> 2022-03-09 15:32:43 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086326447 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086344973 Work one more hour as long as the wage is at least as large as the marginal benefit of another hour of leisure. Just as labor demand is all about marginal revenue product, labor supply is all about the marginal benefit of leisure. ]]> 2022-03-09 15:41:41 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086344973 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086441606 Substitution Effect: Measures how people respond to a change in relative prices. A higher wage increases the returns to work relative to leisure, leading you to work more. That is, a higher wage raises the marginal benefit of working another hour. This effect leads to an upward sloping individual labor supply curve. 

Income Effect: Measures how people's choices change when they have more income. A higher wage increases your income, leading you to choose more leisure and hence less work. That is, the marginal benefit of an hour of leisure increases as wages do. The income effect provides a reason for workers to cut their hours in response to a wage rise. This effect leads to a downward-sloping individual labor supply curve. 

If these effects exactly offset each other, then your individual labor supply curve is vertical. People may have very differently shaped individual labor supply curves, depending on how they value money versus leisure ]]> 2022-03-09 16:27:34 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086441606 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086449372  ]]> 2022-03-09 16:31:09 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086449372 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086538669 Intensive Margin: describes the number of hours each worker supplies- a measure of how intensively existing workers supply their labor 

Extensive Margin: describes the number of people in the workforce- a measure of the extent of work ]]> 2022-03-09 17:13:45 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086538669 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086718452 1. Changing wages in other occupations 
2. Changing number of potential workers 
3. Changing benefits of not working 
4. Nonwage benefits, employment subsidies, and income taxes ]]> 2022-03-09 18:48:06 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086718452 rebeccawisniewski1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086738090 2022-03-09 18:59:10 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2086738090 Gavin_Savercool https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2087327638 1: is it the labor supply curve, the labor demand curve, or both curves shifting? 

2: is the shift an increase or a decrease? 

3: how will wages and the number of jobs change in the new equilibrium? ]]> 2022-03-10 02:11:04 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2087327638 billymangu https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090724742 The chapter labor markets talks about how to make good decisions both as an employer and as a worker and understand how wages are determined. Labor demand decisions and labor supply. Together, these forces provide a powerful framework for identifying where your best opportunities will lie, empowering you to make good decisions when you’re launching your career, adapting to changes in the labor market, or starting your own successful company.]]> 2022-03-11 16:18:29 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090724742 billymangu https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090753552 Work one more hour as long as the wage is at least as large as the marginal benefit of another hour of leisure.]]> 2022-03-11 16:36:01 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090753552 billymangu https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090756845 Measures how people respond to a change in relative prices. A higher wage increases the returns to work relative to leisure, leading you to work more.]]> 2022-03-11 16:38:02 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090756845 billymangu https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090758542 Measures how people’s choices change when they have more income. A higher wage increases your income, leading you to choose more leisure and hence less work.]]> 2022-03-11 16:39:01 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090758542 billymangu https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090764221 2022-03-11 16:42:27 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090764221 billymangu https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090773558 https://www.youtube.com/watch?v=H894hRwJ1PE]]> 2022-03-11 16:48:20 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090773558 billymangu https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090784501 https://www.morningstar.com/articles/1082594/economic-outlook-labor-market-to-drive-gdp-growth]]> 2022-03-11 16:55:23 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2090784501 guntherdickson https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2091783599 2022-03-12 17:38:24 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2091783599 brandymendoza https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2092057087 is the most effective conclusion for society as a whole, taking into consideration all costs and benefits, whether they accrue to buyers, sellers, or bystanders. This entails determining the quantity of a good will result in the greatest potential economic surplus.]]> 2022-03-13 05:23:43 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2092057087 madisonmoran3 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2092756361 https://www.axios.com/new-jersey-gas-station-pump-economy-labor-0fb42fdf-3f5f-4b1d-a473-99963a8849be.html]]> 2022-03-14 00:09:27 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2092756361 madisonmoran3 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2092759351 2022-03-14 00:12:58 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2092759351 chauhuynh1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094793221 The labor market is just like any other market. When firms are looking for workers, they are demanding labor. When workers look for jobs, they are the suppliers of labor. The price that is exchanged between the sellers and the buyers are the wage. 

The upward slope of the supply curve of the labor market is exactly like the law of supply: suppliers are likely to provide more labor when the price is higher (i.e. working longer hours). The downward slope of the demand curve is just like the law of demand: there will be more quantity demanded at a lower price(firms not wanting to hire more workers), and vice versa when the price is higher. The equilibrium is the price that workers (suppliers) are willing to sell, and how much the buyers (firms) are willing to pay.]]> 2022-03-14 23:47:01 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094793221 chauhuynh1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094803606 This is how to apply the core principles to see if you need to hire more workers:

1. Marginal Principle: a "how many" question; break it down and ask if you need to hire one more worker. If the answer is no, then stop. If the answer is yes, then ask "SHOULD I hire one more worker?"
2. Cost-benefit principle: hire one more worker if the marginal benefit of the extra worker is greater than or equal to the marginal cost that incurred. 
3. Opportunity cost: this is to understand the marginal cost and marginal benefit by asking "or what?" employer can either hire this extra worker, OR keep the production at this level. You can compare the marginal benefit to this threshold. ]]> 2022-03-14 23:57:45 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094803606 chauhuynh1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094805594 https://study.com/academy/lesson/understanding-shifts-in-labor-supply-and-labor-demand.html]]> 2022-03-14 23:59:57 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094805594 chauhuynh1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094808435 2022-03-15 00:03:10 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094808435 chauhuynh1 https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094882049 This is how to analyze the choice of taking one extra hour to work using the core principles: 

1. Opportunity cost: you forgo other leisure activities if you choose to work one more hour. Is there something else that you would rather do/have to do?
2. Marginal Principle: "should I work one more hour?" is the question that you should ask, and then determine if a bigger paycheck/more promotions is worth pursuing this extra time working. 
3. Cost-benefit principle: the benefit is the extra money, the cost is the leisure time that you could have had. This principle is also the Rational Rule for Workers: work an extra hour if the wage equals to the marginal benefit of an hour of leisure time. ]]> 2022-03-15 00:57:29 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094882049 daneconely https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094937544 This section explains the concept of supply and demand in the market, and how businesses are on the demand side for workers, and the workers are on the supply side for their labor. The section also explains in detail how both businesses and workers will use the 4 Core Principles of Economics to make decisions on who to hire and who to work for. By doing so, both sides can find the wage and employment that suites there needs.]]> 2022-03-15 01:32:26 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094937544 daneconely https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094973483 This section begins by explaining the Rational Rule for Employers and then explains how a business can apply this rule to determine how many workers can be hired so wage equals marginal revenue product. Then, the four shifters that effect the labor demand are: demand in product, price of capital, better management and productivity gains, and nonwage benefits, subsides, and taxes. Each of these will shift the demand curve of a business. Then, the books explains how robots and minimum wage are connected, and how the interdependence principle has an effect of future jobs in the robotics field.]]> 2022-03-15 01:55:50 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2094973483 daneconely https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2095012988 This section explains the idea of leisure time compared to labor supply, which is time working in the market. By using the 4 Core Principles of Economics, one can evaluate how working more hours would affect them. The Rational Rule for Workers determines if working 1 more hour has the same marginal benefit of 1 hour of leisure time. By using this, one can understand how substitution and income effect will change an individuals supply curve. The book then explains how using the labor supply curve can shift, with the four factors being: changing wages in other occupations, number of potential workers, benefits of not working, and nonwage benefits, subsides, and income tax.]]> 2022-03-15 02:21:50 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2095012988 daneconely https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2095028146 This section explains the steps to analyze if a shift is labor demand or labor supply. By using the three step method, one can determine shat curve is being effected. The three steps are:
Is the supply or demand curve shifting?
Is that shift an increase or decrease?
How will wages and job numbers change at new equilibrium? ]]> 2022-03-15 02:32:11 UTC https://padlet.com/ericaorians/cuwzdw5ndhudip4h/wish/2095028146