Factor Markets
While households are buyers in the product market, what are they in the resource market?
Sellers
What type of slope does the labor demand curve have?
Downward
When demand for a product increases, labor demand shifts which direction?
Rightward
Market where resources like labor and land are bought and sold
the factor market
Curve that shows how many workers are willing to work at different wages
Labor supply curve
What does the R stand for in ROD?
Productivity of RESOURCES
MRP is calculated through what formula?
MP x MR
Why is the labor demand curve downward sloping?
Diminishing Marginal Returns
If the price of a substiture resource rises, labor demand will..
increase
4 factors of production that household provide
Land, Labor, Capital, and Entrepreneurship
Firms hire until what?
MRP = Wage
What does N stand for in PIN?
Number of qualified workers
derived demand
When wages increase, what happens to the quantity of labor supplied
It increases
decrease