This is the change in output at the firm employs one more unit of a variable factor of production in the short run.
What is marginal physical product?
100
This occurs when there is only one employer in the labour market.
What is a monopsony?
100
This is a theoretical line which shows the case of a perfectly even distribution of income.
What is the line of absolute equality?
100
In this type of tax system the percentage of income taken in tax increases as income rises.
What is a progressive tax?
100
This occurs when one party in a transaction has access to less information that the other.
What is asymmetric information?
200
This is the change in revenue of a firm as a result of the sale of output produced by the employment of one more unit of a variable factor of production in the short run.
What is marginal revenue product?
200
Negotiation between an employer and a labor union usually on wages, hours, and working conditions.
What is collective bargaining?
200
This is the sub-division of income among the four factors of production or the contribution of each factor of production to total income.
What is the functional distribution of income?
200
This is a government imposed wage rate which is set above the market rate in the low pay labour market.
What is a minimum wage?
200
This occurs when a person who is insulated from risk behaves differently than he or she would if there exposed to risk.
What is moral hazard?
300
This is the change in cost as the firm employs one more unit of a variable factor of production in the short run.
What is marginal factor cost?
300
An organization of employees formed to bargain with the employer.
What is a trade union?
300
This is a measure of the degree of income inequality among the population.
What is the Gini coefficient?
300
This occurs when an individual's income level is below the average level of the economy as a whole.
What is relative poverty?
300
This is where there are hidden attribute about a good or service which results in suboptimal decisions by either a buyer or seller.
What is adverse selection?
400
This is the per unit price of a factor of production and represents the amount the factor owner is prepared to accept in return for its use.
What is average factor cost?
400
This is a feature of labour where each unit is not identical to another resulting in wage differentials.
What is non-homogenuity?
400
This is a graph which shows the distribution of total income among the population of a country
What is the Lorenz curve?
400
These refer to any program or initiatives undertaken by the government to provide assistance to the poor.
What are welfare benefits?
400
Under moral hazard, these are the type of actions undertaken by individuals who cannot be monitored.
What is a hidden action?
500
This is caused by either an increase in price of the product which the firm produces or an improvement in technology.
What is a rightward shift of the MRP curve?
500
This occurs when an individual is unable to leave one job and take another.
What is labour immobility?
500
This is the division of total income among the population of a country.
What is the size distribution of income?
500
This occurs when an individual's income is not sufficient to afford basic economic needs of food clothing and shelter.
What is absolute poverty?
500
This is the person who acts on behalf of another person or principal in a transaction.