ECO260 MissouriWestern Labor Unions & Minimum Wage Laws

Business Finance

This activity will enable you to:

  • Analyze the implications of minimum wage laws for labor markets

Discussion

Now that you have learned about the labor market and wage determination, think about the implications of minimum wage laws. Then, post a response to the following:

  • Do you think the minimum wage law is an economically efficient means of reducing household poverty? Why or why not?
  • What are some other ways that might be more efficient for this purpose? Suggest two or three viable measures.

Union Actions and the Labor Market

This activity will enable you to:

  • Analyze the implications of union actions for labor markets

Discussion

Unions exert a powerful influence on the labor market, affecting both demand and supply, and thereby the wage rate. After reading about the influence of labor unions, post a response to the following:

  • From an economic perspective, are unions efficient or otherwise? Give reasons for your answer.
  • What objectives do unions serve? Are there other, more economically efficient, methods to achieve these objectives? What might those methods be?
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