Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ CHAPTER 10 Labor Markets and Income Distribution

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 2 EXHIBIT 10-1Computech’s Demand for Labor

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 3 EXHIBIT 10-2Computech’s Demand Curve for Labor

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 4 EXHIBIT 10-3The Market Supply Curve of Labor

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 5 EXHIBIT 10-4A Competitive Labor Market Determines the Firm’s Equilibrium Wage

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 6 EXHIBIT 10-5A Union Causes an Increase in the Demand Curve for Labor

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 7 EXHIBIT 10-6A Union Causes a Decrease in the Supply Curve of Labor

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 8 EXHIBIT 10-7Union Collective Bargaining Causes a Wage Rate Increase

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 9 EXHIBIT 10-8Factors Causing Changes in Labor Demand and Labor Supply

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 10 EXHIBIT 10-9Union Membership, 1930–2000 Source: Statistical Abstract of the United States: 2001, Table 637, p. 411.

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 11 EXHIBIT 10-10Union Membership for Selected Countries, 2000 Source: U.S. Department of Labor, Bureau of International Labor Affairs, Foreign Labor Trends 1997–2000, published by country.

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 12 EXHIBIT 10-11Division of the Total Annual Money Income among Families, 1929–2001 Source: U.S. Bureau of the Census, Table F-2.

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 13 EXHIBIT 10-12Median Money Income of Families, 2001 *Fifty percent of families earn less and 50 percent earn more than the median income. Source: U.S. Bureau of the Census, Tables F-7, F-11, and F-18.

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 14 EXHIBIT Real Median Family Income, 1980–2001 Source: U.S. Bureau of the Census, income/histinc/incfamdet.html, Table F-6.

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 15 EXHIBIT Persons below the Poverty Level as a Percentage of U.S. Population, 1959–2001 Source: U.S. Bureau of the Census, Poverty in the United States: 2001, poverty.html, p.5; Table A-1, pp. 18–21.

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 16 EXHIBIT 10-15Characteristics of U.S. Persons and Families below the 2001 Poverty Level Source: U.S. Bureau of the Census, Poverty in the United States: 2000, Table 1, p. 3 and Statistical Abstract of the United States, 2002, Table 686, p. 445.

Survey of Economics, 4e / Ch. 10 Labor Markets and Income Distribution ©2004 South-Western, a division of Thomson Learning™ 17 EXHIBIT 10-16Labor Markets without and with Racial Discrimination