Labaun Mavket

Ghene. tuekens indenct aidh

-

bloce & empleyos eh

ethe
adive populalion
Labaun outa EConoTmically
includos enpleyed o unemployed,undo
duning speciied. peuiod o dime
- Can be Cadeqaiged as sel empleyed
'wage Salay e n e , Cabun uauko
unemployed, Pad time

Nat Pat o alleun ouce othe Jueadons

Not looKinq o any
Hane Studends
Rained
wak
Pennamentty unalula lo

ce Rudiipcdien Rato
abau
abou
Lnbau euce X100
laaKing a Populaion

Types o Mauket (Jabou mauket Segment)

st level: Irome empleyesment Stalilihy
Highe wnges
Higher educalien tuanUnq
o u d h oppottunüties
2Secondau Seckos: Hiah "stntiwm
inene, lo.husl, skElls
No /less chanceS Puomoilisn
Jeu waes K di{uence
-

Minimol acce ss"to educailion

3Texdia ndntu t o econony that deals

h seuices to Cwtomes
inancial isnsliuiions schcol4
estauwamis

Mauket
Classicaion o Linla
SModels by Clauk Kou
a)Pkect auket
bNeo classica! Mauket

)Nalual Mauket
Mauket
d) The Manogement
The Induluiol Maxket

2) Edmisnd. Phelps classiion

a)Sbuctuwued. MauKet

b Unslwutused Mauket
 Demand &Suphly
Demamd d lauou deuiwed om cleTnond o
D
kims autAut alSo Called deuiNed demo
douwnuoad SlopPing uaph
demor
2) Supply o Jabe : The no oasKens tiinge
Jabo
ahle åo oeuk, nulihlicd Jay heuus ihey Q
uilling oble do a k
upus' slepPing uaph
Two puuomccs onsumpdion goods loiSuwg

3 Aa o Sunply s demamd
At iaheu puice, Juans ü l l demand less
A hiahe Ruce, Sellous Lall Supply n
)This deteumines dhe acuad mauket Ruices
Jalume oocs

Maginal educt (MPP):Mayginal Physicol pal

Charge n dotal autput on ene addidienal.
Umit o unput s added to Ruodn

5 Maus inall Revenue Buoduch (MRP)

-also Called mauginal alue
Paoduct
Mauginal JeNenua CReted due do an
addtion
oh onc unütal Juosowce
MRP MPP X
Maqinal helenue eneatcd
Manginal Revenu Ruocduct oJnlbu
(MRL)
MRPL= MPL X MR

Maginal
Rodaucto
Labaui)
in MRP
TnCueabe n psubduct demaund, isnceae
Incease in pueductindy
iodsaunte,inu
Un MRP

Mauginal e s a c e Cost(MRC)
cone
inCuvLad Ju empring
-

Addilional Cost
motC nit o dhe inpu
JeSowice Cost
Change ún dolad
MRC
MRC=
Init Chonge i n
JeSawce quarUalk

8) Labou Mauket Equilibuium

MRP MRC
JndenSection dmaket dernand CunWe g mauket

Supply Gutve
 pes Jaluow Mauket
) Fec Mauket
& Sells
Joge No oJweus
Hormogennus Ruoduct
ua enby & eit
howve Fecct Knouuladge
Nogot nteuweriion
No duanspaut Cost
ndiidund ms 4 Bkeus ae ogge aKas
No exodion en wage uais
Equiltbium MRP =MRC
Maczimurm Puokt MRP MRC

2)mpextect Mauket
-Jheal tould Cempaltion
loge No. dueus sells
Heieuogeneus poduct
Wage sakes

Monopoly One Sello/Rioduce

One Pusduce o Padicula
Psuocduct
No uaonable subslitula
Abeence Cornpadion
Unique Puoduct
EConomies Scale
-
Nea g Aodol Conol d
mcket
 Manopoly
-Sinqle Selou, Selina uniqua pulut
Notompeltien
4 hypes Monopaly
Namal Monopoy
lcoqsuaphic Monopoly
yovaunmomt mevnopaly
aTechnalcaical mvnobaly
lhe dumand Cuwue in menepoly J simbly Muked
dumamd Cuuua, douwnuaid Slopimy
The Monoalist's ut: Marimiging Cuthdt puice |
To maimige. PicE,he mgial Cost uo Cornpax
dth Tnanginal Jenul
mnuginl kownua exced Tnakginal Ccst thm
úmoeae in Puoit is done by Raoducing moka
magina JuALoNua Jo Jss, Sello in0wmin
b Ruoducing lcss
Bot Maximizal:on MR= Mc
3 Possibiltties for tiems Equulubuum án monteul
Nomal Psotds I aNeage Cost aNeage
:
Acven

2) Subex Naumal ANoage

Cost < Aueaqe Reven
Boits
3n&w losseS : Aveaqc. Cost > Avehage Revenue
4) Cilo pol
Sirnian A0 monopnly
Thee one
hudd oh ducew
deninm rnojey o Je Puclacirn it he
maKel Arm
Cach o n/Budute hn> Signiand imluuenice
en eochalhe, ndedaperdenee in
-

Econornic, logal & dechvalerucl actos Can load

o dhgepaly awnalien
Broduct d:tleuevidindien
Fosibilihy o Callnion

5Monopeony :Onc Buyo)

Has enlb one lu e udicuda toods,Sewite
abou
Emaloy/ by ha Corbuol oveymauke
Wlage Seancho /Woge Saig pouse
Ao
mpley Jabe dl JuaiSed mayginad uwage
atact wkeus
Moginal Cost (mc) iv geaten fhan aveuage.

CoSA CAC)
MRC i s > MRS
marimiging MRP> MRC
 Laubans MoaKet (uale
Peeet Mauket Indistidual Supphy Monopsen Manopal
Fbums Jabou denand Backudad Sleping wehe Cuue buaud-Opdinad uule is Jo
CuNe oubldemand due do derminande the Sloping maKetsapplRueduce She upAut
Dernand Cwlte Js inCome ellec oten Jhe Cuwe u l at uhich he
doLonLocuud sleping Substitudton dtect at
due do lauo o
diminis Jhigh wage louols Demand Cuuwe is mauinal cosi
hug iuuwns ,
Jast wnüt puoduced
Valua maginal
Supply Cuwe id equal to the
nCorne eet:Hiqhe Puodatd Cue (MRY/mauket
Penlecdiy elasdic, oS Lgluad o highe MRP) Ruice
omS aMe wagctokes a unomes, ioue Demand Cute io
dernand liSwn, Butmaximigin mauket dørman&
Macimum Ruokt Cule
MRC MRP
MRC MRP ubslituuion elkcE (sE):
MRC/Mc
ANeunge Cost (Ac) LeiSe beCone osty|
wetker Aend to Sukshfal
Manal Cost (MC)
maxe houtb aLoak
AC
Maximuum Pd
MR Mc
Supply Cule Js o Jeiswe MRP Novmalpdi AC =AR
upwaud sleping kom TE SE
e t do sght aMRe
Supey nozmal A C ZAR
3) Losses Ac > AR
 Tdicaene ule
Cominniion Joocds ihat aive
A MAph shouing
Saülisjaclion & t i t
ConSurne equal
Satre
Coninniions giNe aSalauion
louel
AlL
downuaud Sloping,ConNex
Cule iv
-Tndlleuence

ndience Cute higheu Sauol o sdisoctio

Highe
indensect
eachaihe
-
Neven
heoy oConSumpiioon
D

MaP awt iliy naci miation

PoAobleTN

soqamt l e
s o quand on so poduct
ence Cuve.
Equal foAodact s Puoducdion isnd
- downumd sloping ConNex o Ouin

Higthe odpa: Jujgh isoquant isndicades ige

Qdput nan Jel
Neveu undeuScet
Thee Poduction
-Mop Cost minimigadion Pueblems
Ox Pueducess
A Quaph hooing dient Combinadions ol Jwo JSousces
giNe /Puodace equalamaund a Pooducd
 Unimblyemame amd Undonombloymond

Unambleymont
Fenson in labou. Manket wilhauE uok
-wdheut paid mlryomont e*
Unleymend
Cuowniu Aunilalile t ubrk o Soeing anyw
D
Ltn gmbloymant Rale = unumpleyed
nhw ce

Employnent:
siat o lung Umpleyed e sel emblbyecl
AaceiNe wages and honeils
embloyomont tato= Embleyed tos9on
lauouwi ece
D

Undamplryment
he UTdouue oa ubMker Jacause a jal does nat
use dhe aetke's sklls
s patrJime leovcs Ake l e
Undoxcmbleyemum Undatembloypd Ponson X loo
Role
Labow oHce n
lotal omloyemernt
 lypes
d' o Unamplymunt
FAuchenal Umumplayrment.
he peiod ouTnumplaymen Jalwwm Irsin eno. ic
inding ohcthc
The peuiod ouremployrmomt oe omplaiion o sdudie
and e l j d
occws a>a oSuk oNelumbay Chunga o jobs
- is shost lived
Cauned sdus. do ladk o necessay sklbs er apadtula
tlo lalbou ammelill, lokdeuon
o machune
Shedage aus malbialL
a)SeaSona Unümblryment:
-

OCCuxS duwing Cextaun Searens o he

yea
eSuks
om Seaenal tuactualionb in
CraUTning uiSm t demonds
3Cuclical Unompsleymemt
-Auses duo do Gyckca
ucualiens in the. eConomy
-aliounnlina peiods boema &
duvüny douwning o a luniness depkahnion.
and
allpu alt aading to yda #Uncone
Shat uan phnomenon tudepucad umemplpy me
ditleene
D Juotuvcon he exisding lactual) and
notuoLa unomployment he
4sbutual Unumblrymund:
Aises due to dsantic chamges in the Cconoric
Sbuclu a Cauntsy buniness
Nallal aulcome econornic dauolpmemt and
dechnoloaical odtancemont
-

Happensuhun dhe skilbb Set of ueko doos not

motch he sklls dermands Ha
e ha uaEko Cannat jobs aunilale
locadien d job
a
Suach the 9eobhical
Sechnelogical Unemplryment
utomatien e displacement o eld dechnodogies
J aned ene
-

New
dechnalogu uquies loss labo
6 DisquiSed Unenbleyment:
-Concealed et disquised unempleymont is ComTenin
undudadsped sunlies.
i s Ihvsluntauy
pescn is Said te ha. disquises
-

his Cordibudion do unemsltyed

CaT Output Ness fham uhat he
in
Poduce lu akinq ot namal.
houws peto
7Hidden Unemplrymumt:
Ralos to petle uho ase
Uneinplymant qunes dojoblass, Jut ollical daty
Incudeb undeuembloyemenna Jndude"them
s Open/chunie/Naked Unemplymeni.:
- A Situdien uhae in a wige. Secdion h l a l e u s
oce docs not qet a job en o g u d a
Can be SaUn Caunded Un eAms
and Ihe nunnbes
ounemployed poon
Labau oce caFands ata a i e a t e ham the
9outh Jalo oeconornu
- Unmploymend Gnlinuos do Jea leng deumeati
oa Ceunby

MeanwwTmnont ounemplaymertt
develore by Nadionad Sampe suuuy aqonisation (NSS)

Usunl siois TWwdy

d
stalno Cuownt dailu
open chMonic unemp -Esimates Mcanuo sialin
-Adinsy stalus
-Aoymunt unemploy mont
cstimotin the ND. uuh uspect to Poesost cach
tecple uohe lormnined Onc wRek day o ueccedia
Uhamplnyed ter a -Unemployed Tnor cays
Unemployed; did
maa pat oyen alilo Jo wbilk even
nad ind a uek
Lowest estimalo oon
wkho duding n encday un
Unumplormun Ernployed i Emplayd: wks
Cmployed enly do
a
day dwung th mane dwung Q
day
- Mot Compwhennive

method
 Elanhity Thelaslic
Elandicils /Elanic demand
Elonid meanoS Jbu SerSifive an cconomic acto
A to anottheu

dormand elanliily uous ho sersitive domamd he

9ood is Combaod
Lo chmges in
ke pice ot nLemo
etheuetonomic.to
Value a elasliat i
gueoato thab L.0
ez Clálhung, elcdbonic cte .'

Inelanaty / Inclantc domamdL

-Econonic Toum alung te he sialic
ood Seuice hon is ice
e
quanly oa
Changed
Buing hnlit tomain Sume
-Value d
coeicierd eladii is less than o
e.
Medical iuedriont, Necessities
he Bice Elasichy
Demasnd
a daguoa o uaspenSiNeness o
duTnandad a quamlay
Cormmodili dua Jo hang n puice.
sthe hings Jomaun undchanged s
elasticii
-The Buce
cladic dermand às
dafincd as peucendoge
Change n
quanlily demandod du do Cetaun
ToLCendoe Change in Ruica
Ep AP
 Elasia nd Tielandiuk Demard.p
Ep1
= AP
Demamd io pexjctia Demand AemainsS
Ponce change in A9 4AP
eladic he quarditConStant
Cemandas incacaeS Zeuo elaicity
derman
O uae han-Simplyilo Unila eandicitu
unni wh Smal Pembchonge in demamd
magina
ain puce ot guandiNol ucal Psice Demand u u ud
Demand Cuwwe i b Demand Cuwuue ud
detnandalls Jo Zcuo
Steepe
t h Smal ise in Vedical sdunight line JALctangula
Puice Paalll Y ai s
Higlelazdic o y Peubala
Inirite elandic Simpl aniic detard
Nod oal
Demond Cuure s Deman Cwle is

heugental sluaight
ne pasuallal Jox-obis
D
YaSs
 Modals ThBNies o Lnlubu Mauket
Classical Mode (Adan Snith, JB Seuy, J.s Mill
baSed en nsSumplen oul enpleyement
erislence oan euilibuium lonal tohene deinay
0 lakous i cqunl te the Supply o iabou
ualos.
ot the Puevalent wage
Tmpotoant asSuwmplions:
)Noumal siiualion aull empleyement du do
OVe pedudlion

b)Fleibility o auce &woge

Laisse3we Capitalist economy
)Fercct Competisn in lalkouw, 8 poduct Tnaal
Total Gudput o the econeny s dividhd. Juduveam
ConSumplion& inNeStment expondiBuneb

t Mone oge4 Jueal woges ae diedhy pouupoadi

nisihle Hand lheakrm (Adam Smth-"he klealth

Nafiers)
The wnelbeualle mnket euta that helps, he.
demomd 4 SPply oodsin a ku maket
Ho onch equili bium aulomhc olly

Say's law Supphy endas iBs oun damand

ALso Callad Jou o mauket
Paoducion o a poueduct Cuenles derand fet
anothe Puoduct Juy Paueruiding Nalu
 Men lassiin Model Leon wlabuas, Allud Mashall
Vallmado Rul (1891) (1920)

abaw maket Jas

a suenuliling cteu, the
Ruice ic Ssalay
Equilibuium is made Jniween Supply
dernand
o Jalbeut thueugh woqed
-Unempleyemeni nealy ineist
acceSs te inemaliem theu
ENeyone J n s tuae
D
decision makino
Aequine e

Modl(J. Maynaud Keynes (1936)

Keynesinm dansica
uaith clasSical 4 n c o
Conbuadiction

model
- Knouon a thea oull empleument
iheasyyemplsyrment, Indeast4
Ihe Jemea
Money (la36)
woges, puice
lnbeu
Theue i s no oribity in
goleunment
oe nal oible theugeLe Jeqwe
e a l i s e julD empleyment
Saade id.cuNention t o
buiumn
-
Develeped his undeiemplement eqii
ypoiheSiS
dekined nValundo unermpleymendt

-Unemloyment anises
du o deicien to ehkdw-
denasndL
Aggeaate electue dennand waLld inuuase
empleymemt
J
 Employmem!
(euflbu deteumined
Todal dérnaond im
by dotal0 demand
Nadiona Income = Nalipd
=
demand
EdiNe

ModelMmton fiiedoman (1960) Kowl

4Mnelosu
Gunne & Allan Mllgo (la11)
Keynanian mod accacling Jo
-Stardsunm
hich unge io xed Yneuing enl i n enee
dinecdiem, ic upuud 7

Edmund Phdps: Moncta Pelity Con enly

Jucplace e n shoet-teum
h e wñembleyement

that id n d o the nalinal Juate.

- Fsüedman : domamd 4 Supply n Jalioui

maket dees not depemds en mominal waes
Jut en Ahe Jual wnge
Iladion is Caued l the Jupid expansia
T n a y Supply in Ahe economy

S)The Un Jalanced Jaleu rnasukt (Shonlay ishe

Sahn 8. laula)
Eistence. o Jnbou Contuacts deteumine> he
establishment o nominn0 wase. ot employene
en he Lonc eum

Monctasu Peliyaue long-

Jaosing hects
 Wage Modol
6)The sieny
Theue in iulnliensip JctLoeen wage louds .
a p k e s Rubducdivsly

Paid åo mancimize their

WeKe's do be

Buocacli

osiile EConarnics 8 Naurnolive Elanomics

EConomics:
W h a t i s scenaio'
sitile Je apaueued,disappo
and Cannat
Baned en act
-Ned
eplanalion
-otus en disauplion,uantcation&
eConomic detelopmemts

- helies en dota analyais, tacts 4 i w s

- Caue and k lcdionship

NsumadiNe Economics What shauld be o Duaht

o be'
based en ideologicod, opinisn-Ouiesnded, N a l
udgerments, PouSonal Prspectives, Subcclive
Noumaive economics lodements aue uiqid
pieuipive in natu