ECP 3203 Lecture Notes - Lecture 1: Profit Maximization, Decision Rule
Document Summary
Labor market issues govern our lives and the lives of those around us. It is almost impossible to read a newspaper or watch a television news program without encountering a story related to jobs, wages, education, discrimination, unemployment, or a similar topic. Labor markets are different from most other markets because labor can only be rented; workers cannot be bought and sold. However, labor markets are much like other markets in that the market simplifies contact between buyers and sellers, exchanges information about price and quantity of labor services, and permits contracts to be executed. Chapter 1 of the text focuses on the methodology of modern labor economics. When the focus of the economic inquiry is identifying, understanding, and measuring labor market relationships (i. e. , when the focus is trying to uncover what is true about the labor market), the analysis is characterized as positive economics.
