Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 6 - The Economics of Labor Markets
Chapter 18 of 36 The Markets for the Factors of Production
Section 3 of 19
…
Your personal income is determined largely by what kind of job you have.
If you are a computer programmer you will earn more than if a gas station attendant.
No law requires computer programmers be paid more than gas station attendants.
No ethical principle states programmers are more deserving.
…
In 2008 the total income of U.S. residents was about $14 trillion, about 75% of it was earned by workers as wages and benefits.
The other 25% of income went to landowners and the owners of capital - the economy's stock of equipment and structures - as rent, profit, and interest.
…
What determines how much of income goes to workers, landowners, and owners of capital?
Why do computer programmers earn more than gas station attendants?
Why do some landowners get higher rental income than others and some capital owners get greater profit than others?
These questions and most in economics are answered by supply and demand.
The supply and demand for labor, land, and capital determine prices paid to suppliers of resources.
…
The factors of production are the inputs for producing goods and services.
Labor, land, and capital are the three main factors of production.
When a computer firm produces a new software program, it uses
· labor - programmers' time
· land - the physical space on which its offices are located
· capital - an office building and computer equipment
When a gas station sells gas, it uses
· labor - attendants' time
· land - the physical space
· capital - the gas tanks and pumps
Supplies including material and energy inputs are considered secondary factors, they also are obtained from labor, land, and capital.
…
Here we will consider and examine:
Factor demand, how a competitive, profit-maximizing firm decides how much of any factor to buy.
Demand for labor, the most important factor of production because workers receive most of the total income earned.
How the lessons we learn about the labor market also apply to markets for other factors.
Explanations of how the income of the U.S. economy is distributed among workers, landowners, and owners of capital.
Why some workers earn more than others.
How much income inequality results from the functioning of factor markets.
What role government should play in altering income distribution
… …
computer software
konpyūta sofutouea
コンピュータソフトウェア

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