Shared Flashcard Set

Details

Economics Ch.16
The Markets for Factors of Production
11
Economics
Undergraduate 1
12/06/2009

Additional Economics Flashcards

 


 

Cards

Term
Derived demand
Definition
The demand for a factor of production that is derived from the demand for the good the factor produces.
Term
Marginal product of labor
Definition
The additional output a firm produces as a result of hiring one more worker.
Term
Marginal revenue product of labor (MRP)
Definition
The change in a firm's revenue as a result of hiring one more worker.
Term
Human capital
Definition
The accumulated training and skills that workers possess.
Term
Compensating differentials
Definition
Higher wages that compensate workers for unpleasant aspects of a job.
Term
Economic discrimination
Definition
Paying a person a lower wage or excluding a person from an occupation on the basis of an irrelevant characteristic such as race or gender.
Term
Labor union
Definition
An organization of employees that has the legal right to bargain with employers about wages and working conditions.
Term
Personnel economics
Definition
The application of economic analysis to human resources issues.
Term
Economic rent (pure rent)
Definition
The price of a factor of production that is in fixed supply.
Term
Monopsony
Definition
The sole buyer of a factor of production.
Term
Marginal productivity theory of income distribution
Definition
The theory that the distribution of income is determined by the marginal productivity of the factors of production that individuals own.
Supporting users have an ad free experience!