Thursday, April 8, 2010



Students shall be able to

  1. Differentiate between nominal and real wages.
  2. List several factors that have led to a rising level of real wages in the U.S. historically.
  3. Explain and illustrate graphically how wage rates are determined in competitive and monopsonistic labor markets.
  4. Find the equilibrium wage rate and employment level when given appropriate data.
  5. List several methods used by labor organizations to increase wages and the impact each has on employment.
  6. Explain and illustrate graphically how both an inclusive (industrial) union and an exclusive (craft) union would affect wages and employment in a previously competitive labor market.
  7. Explain and illustrate graphically wage determination in the bilateral monopoly model.
  8. Present the major points in the cases for and against the minimum wage.
  9. Summarize empirical findings on how unions have affected U.S. wage rates.
  10. List three major factors behind wage differentials.
  11. Describe briefly salary systems in which pay is linked to performance rather than to time.
  12. Describe the negative side effects of poorly planned incentive pay plans.



  1. Students shall take notes on chapter 28 in McConnell & Brue.


  1. Take notes on chapter 28 in McConnell & Brue. [Click here for the online PowerPoint.]



Monitor and adjust as necessary.