Term
| marginal product of labor |
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Definition
| the change in output from one additional unit of labor |
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Term
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Definition
| increase in the level of an activity as long as its marginal benefit exceeeds its marginal cost. choose the level at which the marginal benefit equals the marginal cost |
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Term
| marginal revenue product of labor (mrp) |
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Definition
| the extra revenue generated from one additional unit of labor ; mrp is equal to the price of output times the marginal product of labor |
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Term
| short run demand curve for labor |
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Definition
| a curve showing the relatioship between the wage and the quantity of labor demanded over the short run, when the firm cannot change its production facility |
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Term
| long run demand curve for labor |
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Definition
| a curve showig the relationship between the wage and the quantity of labor demanded over the long run, when the number of firms can modify their production facilities |
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Term
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Definition
| the change in the quantity of labor demanded resulting from a change in the quantity of output produced |
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Term
| input substitution effect |
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Definition
| the change i nthe quantity of labor demanded resulting form an increase in the price of labor relative to the price of other inputs |
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Term
| substitution effect for leisure demand |
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Definition
| the change in leisure time resulting from a change in the wage ( the price of leisure) relative to the price of other goods |
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Term
| income effect for leisure demand |
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Definition
| the change in leisure time resulting from a change in real income caused by a change in the wage |
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Term
| market supply cuve for labor |
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Definition
| a curve showing the relationship between the wage and the quantity of labor supplied |
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Term
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Definition
| the increase in a person's wage resulting from the learning of skills required for certain occupations |
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Term
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Definition
| the information about a person's work skills conveyed by completing college |
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Term
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Definition
| a government spending program that provides assistance to those whose income falls below a certain level |
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Term
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Definition
| the study of the nation's economy as a whole; focuses on the issues of inflation, unemployment, and economic growth |
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Term
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Definition
| sustained increases i nthe average prices of all goods and sevices |
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Term
| gross domestic product (GDP) |
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Definition
| the total market value of final goods and services produced within an economy in a given year |
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Term
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Definition
| goods used in the production process that are not final goods and services |
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Term
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Definition
| a measure of GDP that controls for changes in prices |
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Term
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Definition
| the value of GDP on current dollars |
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Term
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Definition
| sustained increases in the real GDP of an economy over a long period of time |
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Term
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Definition
| purchases of newly produced goods and services by households |
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Term
| private investment expenditures |
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Definition
| purchases of newly produced goods and services by firms |
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Term
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Definition
| total new investment expenditures |
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Term
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Definition
| deduction in the value of capital goods over a one year period due to physical wear and tear and also to obsolescence; also called capital consumption allowance |
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Term
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Definition
| gross investment minus depreciation |
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Term
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Definition
| purchases of newly produced goods and services by local, state and federal governments |
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Term
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Definition
| payments form government to individuals that do not correspond to the production of goods and services |
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Term
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Definition
| a good produced in a foreign country and pruchased by residents of the home country (ex, US) |
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Term
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Definition
| a good produced in the home country and sold in another country |
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Term
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Definition
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Term
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Definition
| the excess of imports over exports |
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Term
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Definition
| the excess of exports over imports |
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Term
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Definition
| the total income earned by a nation's residents both domestically and abroad i nthe production of goods and services |
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Term
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Definition
| GDP plus net income earned abroad |
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Term
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Definition
| income, including transer payments, received by households |
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Term
| personal disposable income |
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Definition
| personal income that households retain after paying taxes |
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Term
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Definition
| the sum of all the income- wages, interest, profits, and rent- generated by an organization. for a firm, we can measure value added by the dollar value of the firm's sales minus the dollar value of the goods ad services purchasd from other firms |
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