Foundational aspects of economic theory that are of relevance to a career in industrial relations and human resources are the subject matter of this course. The theoretical analysis is supplemented by empirical evidence related to the Canadian labour market. Topics covered include competitive labour markets and the incidence of payroll taxes; employee behaviour, the labour-leisure choice model and alternative work-time arrangements; firm strategy, production, costs, present value, and fringe benefits; the impacts of unions and collective bargaining on the labour market; the impact of the macroeconomic environment on various HR and IR outcomes such as strike activity, union certifications, and the magnitude of wrongful dismissal awards; the impact of government monetary and fiscal policy on unemployment, inflation, and wage settlements.