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Examining the “Lump of Labor” Fallacy Using a Simple Economic Model (Page One Economics)

The lump of labor fallacy holds that there is a fixed amount of work to be done, which determines the number of jobs in an economy. If this were true, new jobs could not be generated, just reallocated. This essay provides some clear thinking about the role of labor in an economy.

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Audience:   High School, College, Consumers
Language:   English
Subjects:   AP Economics, Economics
Resource Types:   Publications, Lessons
Concepts:   Productivity, Factors of Production/Productive Resources, Physical Capital, Markets