
ECONOMICS TOPIC 5 LESSON 6
Presentation
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Social Studies
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12th Grade
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Practice Problem
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Medium
Richard Orton
Used 11+ times
FREE Resource
22 Slides • 9 Questions
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TOPIC 5 LESSON 6
Labor and Wages
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Essential Question
How can businesses and labor best achieve their goals?
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Learning Objectives
Analyze how supply and demand in the labor market affect wage levels.
Describe how skill levels and education affect wages.
Explain how laws against wage discrimination affect wage levels.
Identify other factors affecting wage levels, such as minimum wage and workplace safety laws
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Supply, Demand, and the Labor Market
•Labor Demand
•Labor Supply
•Equilibrium Wage
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Derived demand
a type of demand that is set by the demand for another good or service
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Productivity of labor
the quantity of output produced by a unit of labor
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Supply, Demand, and the Labor Market
A highly skilled neurosurgeon can earn over $500,000 per year. Neurosurgeons must complete four years of medical school and several more years of residency training.
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Types of Labor
•Unskilled labor
•Semi-skilled labor
•Skilled labor
•Professional labor
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Supply, Demand, and the Labor Market
Analyze Information Based on the information, what do you predict is likely to happen to the number of workers if customer demand for the toy decreases?
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Open Ended
Analyze Information Based on the information, what do you predict is likely to happen to the number of workers if customer demand for the toy decreases?
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Equilibrium wage
the wage rate, or price of labor services, that is set when the supply of workers meets the demand for workers in the labor market
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The graph shows a demand curve for restaurant cooks. Analyze Graphs If each cook works a 40-hour workweek, how many cooks will be hired at $12 an hour and at $16 an hour?
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Open Ended
The graph shows a demand curve for restaurant cooks. Analyze Graphs If each cook works a 40-hour workweek, how many cooks will be hired at $12 an hour and at $16 an hour?
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Multiple Choice
What determines the equilibrium wage of labor?
A. The demand for workers in a labor market is less than the supply.
B. The supply of workers in a labor market meets the demand for workers.
C. The supply of workers in a labor market exceeds the demand for workers.
D. The demand for workers in a labor market exceeds the supply.
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Labor and Skills
Why do lawyers earn more money than carpenters, and carpenters more than cashiers? Wages vary according to workers’ skill levels and education, as well as according to supply and demand. Jobs are often categorized into four skill levels:
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Labor and Skills
Auto mechanics like this one are part of the skilled labor force. Prospective auto mechanics often attend a technical college for specialized training and then gain experience on the job.
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Labor and Skills
The graphs show how wages compare for similar jobs with different degrees of risk. Analyze Graphs How do the demand curves in the two graphs compare? What can you conclude?
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featherbedding
the practice of negotiating labor contracts that keep unnecessary workers on the company’s payroll
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Open Ended
The graphs show how wages compare for similar jobs with different degrees of risk. Analyze Graphs How do the demand curves in the two graphs compare? What can you conclude?
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Multiple Choice
Which is an example of a semi-skilled laborer?
A. a worker in a food-processing plant
B. an auto mechanic
C. a hotel manager
D. a dishwasher
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Discrimination in the Labor Market
As we have seen, wages for a particular job should end up at the equilibrium price of labor for that job. However, some people are paid less because of the social group they belong to. For instance, in the past, women and members of minority groups often received lower wages than white male workers for the same work. This practice is wage discrimination.
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glass ceiling
an unofficial barrier that sometimes prevents some women and minorities from advancing to the top rank of organizations dominated by men
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Discrimination in the Labor Market
•Laws Against Wage Discrimination
•Pay Levels for Women
•Pay Levels Across Society
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Discrimination in the Labor Market
Analyze Graphs How did the gap in earnings between men and women change between 1980 and 2012?
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Open Ended
Analyze Graphs How did the gap in earnings between men and women change between 1980 and 2012?
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Multiple Choice
Which law requires that men and women performing the same job receive the same pay?
A. Civil Rights Act of 1964
B. Fair Labor Standards Act of 1938
C. Equal Pay Act of 1963
D. Federal Employees’ Compensation Act
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Additional Factors Affecting Wages
In addition to laws forbidding discrimination, several other factors can affect wages. These include minimum wage laws, workplace safety laws, employer actions, and labor unions.
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Additional Factors Affecting Wages
•Minimum Wage Laws
•Safety Laws
•Employers Respond to Wage Levels
•Unions
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Multiple Select
Which of these describes an action an employer may take to reduce the cost of wages?
A. hiring permanent, rather than temporary, workers
B. including featherbedding jobs in union contracts
C. substituting workers for machines
D. outsourcing jobs to another country
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Additional Factors Affecting Wages
In 1938, unionized garment workers in San Francisco went on a strike that resulted in their obtaining higher wages, better hours, and improved working conditions.
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Open Ended
How can businesses and labor best achieve their goals?
TOPIC 5 LESSON 6
Labor and Wages
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