Asked by Jessica Nichole on Jul 24, 2024

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The key belief that distinguishes the mainstream economics school from the institutional labor economics school (or industrial relations school) is the notion that labor markets can live up to the ideal of perfect competition.

Mainstream Economics

The dominant school of thought in economics, focusing on the analysis of market behavior and the allocation of resources through the price mechanism.

Institutional Labor Economics

A branch of economics that studies the way institutions and societal norms impact labor markets, employment, and wage setting.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and easy entry and exit for businesses, leading to optimal distribution of resources.

  • Acquire knowledge on the standard economic perspective regarding efficiency, fairness, and participation in the employment relationship.
  • Analyze the operations of unions within labor markets from myriad economic viewpoints.
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Nicoletta ChambaJul 29, 2024
Final Answer :
True
Explanation :
The mainstream economics school believes that labor markets can live up to the ideal of perfect competition, while the institutional labor economics school (or industrial relations school) sees labor markets as imperfect, and influenced by institutional factors, such as unions, minimum wage laws, and other labor regulations.