Table 17-1 provides data about starting salaries for selected professional degrees; in it you can see that PhD economists are paid less than MBAs. If economists are rational, why are they economists?...

Table 17-1 provides data about starting salaries for selected professional degrees; in it you can see that PhD economists are paid less than MBAs. If economists are rational, why are they economists? Radical economists argue that labor markets are governed by nonmarket forces such as discrimination as well as by the supply and demand for labor. As they see it, poverty and inequality are not aberrations but systematic labor market outcomes. They also believe that unions are muchneeded equalizers that help low-wage workers. a. How does the radical view of the workings of labor markets and role of unions differ from that presented in your textbook? b. In your opinion, how fairly do labor markets operate? c. Do labor market outcomes need redress through collective action? (Radical) 6. In firms, the manager is assumed to hold down workers’ wages in order to maximize his profits. Who holds down the pay of managers?