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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
rate of interest expressed in purchasing power
What is real interest rate
100
A firm in perfect competition in the resource market that cannot set wages.
What is a wage taker
100
This graph:
What is a monopsony?
200
MRPL/PL = MRPC/PC = 1
What is profit maximization?
200
the price paid for the use of money
What is interest
200
MPL/PL = MPC/PC
What is least cost combination.
200
The missing line
What is MRP
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
the price paid for the use of land and other natural resources that are completely fixed in total supply
What is economic rent
300
Unions that restrict worker entry. These unions restrict the labor supply in an industry.
What is exclusive unionism?
300
This graph:
What is a monopsony?
400
The vertical summation of all firm's resource demand schedules.
What is the Market Demand Schedule?
400
what remains after all costs (both explicit and implicit costs) have been subtracted from a firm's total revenue
What is economic or pure profit
400
A plan that sets wages based on productivity.
What is an incentive pay plan?
400
This graph:
What is perfect competition
500
Income gets distributed according to contribution to society's output.
What is the marginal productivity theory of income distribution?
500
concept that the supply of and demand for loanable funds determine the equilibrium rate of interest
What is loanable funds theory of interest
500
Laws limiting the interest rate on loans.
What are usury laws?