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Earnings and Discrimination

CHAPTER 19 EARNINGS AND DISCRIMINATION. Earnings Variations. Differences in Earnings in the United States TodayThe typical physician earns about $200,000 a year.The typical police officer earns about $50,000 a year.The typical farm worker earns about $20,000 a year.. CHAPTER 19 EARNINGS AND DISCR

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Earnings and Discrimination

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    1. CHAPTER 19 EARNINGS AND DISCRIMINATION 19 Earnings and Discrimination

    2. CHAPTER 19 EARNINGS AND DISCRIMINATION Earnings Variations Differences in Earnings in the United States Today The typical physician earns about $200,000 a year. The typical police officer earns about $50,000 a year. The typical farm worker earns about $20,000 a year.

    3. CHAPTER 19 EARNINGS AND DISCRIMINATION Earnings and Productivity Wages are governed by labor supply and labor demand. Labor demand reflects the marginal productivity of labor. Labor supply reflects the marginal opportunity cost of work.

    4. CHAPTER 19 EARNINGS AND DISCRIMINATION Earnings In equilibrium, each worker is paid a wage equal to the value of his or her marginal product (or, contribution to the economy’s production of goods and services). This wage is also equal to the marginal cost of working. We saw all this in Chapter 18.

    5. CHAPTER 19 EARNINGS AND DISCRIMINATION Ch. 18 Figure 4 Equilibrium in a Labor Market

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