Chapter 27 DEMAND
Chapter 28 SUPPLY
Chapter 29 INTEREST RENT PROFIT
Key Terms
Graphs
100
Demand for resources that depend on the demand for the products that they make.
What is derived demand?
100
Wages paid based on productivity, designed to elicit a desired performance level from employees.
What is pay for performance?
100
Price paid for the use of land and natural resources that are completely fixed in total supply.
What is rent?
100
A firm in perfect competition in the resource market that cannot set wages.
What is a wage taker
100
When MRC = MRP on a perfect competition graph.
What are equilibrium conditions?
200
MRPL/PL = MRPC/PC = 1
What is profit maximization?
200
Organization of all available labor and the use of the power of numbers to pressure firms into following demands (they reserve the right to strike).
What is inclusive unionism?
200
Henry George's proposal. It is criticized baecause government spending is too high.
What is a single-tax movement?
200
MPL/PL = MPC/PC
What is least cost combination.
200
This graph:
What is a monopsony?
300
The change in product demand, change in productivity of the resource, or change in the price of other resources.
What are the determinants of resource demand?
300
Leads to higher demand for labor and higher wages.
What is higher productivity.
300
The time length of a loan. The longer this is, the higher the interest rate.
What is loan maturity?
300
Unions that restrict worker entry. These unions restrict the labor supply in an industry.
What is exclusive unionism?
300
This graph:
What is perfect competition?
400
The vertical summation of all firm's resource demand schedules.
What is the Market Demand Schedule?
400
A combination of monopsony and inclusive unionism.
What is a bilateral monopoly?
400
An economy in which basic forces are constant and unchanging (this one is a gimme YOU LUCKY DAWG).
What is a static economy?
400
A plan that sets wages based on productivity.
What is an incentive pay plan?
400
The missing line.
What is MRC?
500
Income gets distributed according to contribution to society's output.
What is the marginal productivity theory of income distribution?
500
The outcome of bilateral monopolies on the market situation due to the bargaining power of each side.
What is indeterminate?
500
They stem from changes in the general economic environment, changes in the structure of the economy, and changes in goverment policy.
What are uninsurable risks?
500
Laws limiting the interest rate on loans.
What are usury laws?
500
MRC is higher than supply because of the cost equalizing employee salries when more labor is hired.
What is a monopsony?
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