Labor and Capital Markets
George Mason University professor John Nye taught a class about the economic history of the Industrial Revolution in the United States and Great Britain. Here he discusses the trade-off between labor and capital in production.
Description
George Mason University professor John Nye taught a class about the economic history of the Industrial Revolution in the United States and Great Britain. Here he discusses the trade-off between labor and capital in production.
Bell Ringer Assignment
- What is the payment for labor?
- Explain the labor and machine (capital) trade-off for high wage versus low wage economies.
- AP Microeconomics Graphing/FRQ Practice: Assume AutoMaker ABC is a perfectly competitive, profit maximizing firm that hires labor in a perfectly competitive labor market. Draw correctly labeled side-by-side graphs for the labor market and AutoMaker ABC labeling the market wage (W1), market quantity of workers (Q1), the firm wage (Wf) and firm quantity of workers (Qf). If there was an increased demand for automobiles, what would happen to the demand for labor? Explain.
Participants
Vocabulary
- Capital Markets
- Labor Markets
- Machine Specialization
- Uniformity
- Wages