ECON 3240 (week 1)
1. What is labour economics a relevant subject to study?
2. What do labour economics study?
2.1 what is the focus of economics in general?
First focus: the study of human behaviour regarding the production and exchange of goods and services.
- The pursuit of self-interest
- Scarcity and the concept of opportunity cost
- Optimal decision making
Second focus: the interaction of economic agents (households and firms) in markets
- The concept of the market
Third focus: the interaction of markets in an economy
Distribution of National Income (2010)
Wages, salaries and supplementary labour income – 69.6%
Corporate profits – 14.8%
Interest and miscellaneous investment income – 5.7%
Income from non-farm unincorporated business including rent – 8.5%
- Firms operates in financial markets, commodity serviced markets, and labour markets
(households, companies, government agencies) – usually in HR
- Labour economic widens your horizon, see outside of the box, see the firm outside of the
ESSENTIAL IN ECONOMIC
- It is a social science, it deals with human being and behaviour
1. Assumption that human beings make that are driven in self-interest
- Utilitarianism: people are driven by self-interest; people pursue their self-interest would