Factor Markets
Terms : Hide Images
| 8154805108 | physical capital | often referred to simply as "capital"—consists of manufactured productive resources such as equipment, buildings, tools, and machines | 0 | |
| 8154805109 | human capital | improvement in labor created by education and knowledge that is embodied in the workforce | 1 | |
| 8154805110 | derived demand | demand for a factor; results from (that is, it is derived from) the demand for the output produced | 2 | |
| 8154805111 | factor distribution of income | division of total income among land, labor, capital, and entrepreneurship | 3 | |
| 8154805112 | marginal revenue product | additional revenue generated by employing one more unit of that factor | 4 | |
| 8154805113 | marginal revenue product curve | shows how the marginal revenue product of that factor depends on the quantity of the factor employed | 5 | |
| 8154805114 | rental rate | of either land or capital; is the cost, explicit or implicit, of using a unit of that asset for a given period of time | 6 | |
| 8154805115 | equilibrium marginal revenue product | is the additional revenue generated by the last unit of that factor employed in the factor market as a whole | 7 | |
| 8154805116 | economic rent | payment to a factor of production in excess of the minimum payment necessary to employ that factor | 8 | |
| 8154805117 | marginal productivity theory of income distribution | every factor of production is paid the equilibrium marginal revenue product | 9 | |
| 8154805118 | time allocation | how many hours to spend on different activities | 10 | |
| 8154805119 | leisure | time available for purposes other than earning money to buy marketed goods | 11 | |
| 8154805120 | individual labor supply curve | shows the quantity of labor supplied by an individual depends on that individual's wage rate | 12 | |
| 8154805121 | marginal factor cost | the additional cost of employing an additional unit of a factor of production | 13 | |
| 8154805122 | monopsonist | single buyer in a factor market | 14 | |
| 8154805123 | monopsony | market in which there is a monopsonist | 15 | |
| 8154805124 | cost-minimization rule | employ factors so that the marginal product per dollar spent on each factor is the same | 16 | |
| 8154805125 | compensating differentials | wage differences across jobs that reflect the fact that some jobs are less pleasant or more dangerous than others | 17 | |
| 8154805126 | unions | organizations of workers that try to raise wages and improve working conditions for their members by bargaining collectively | 18 | |
| 8154805127 | efficiency-wage model | some employers pay an above-equilibrium wage as an incentive for better performance and loyalty | 19 |
