Micro Economics

Front 1

supply labor market

Back 1

Demand is how many laborers people are willing to hire; supply is how many laborers are willing to work

Front 2

wage rate does what to curves?

Back 2

moves ALONG curves

Front 3

non monetary benefits OR similar job markets wages do what to curves?

Back 3

causes them to SHIFT

Front 4

MFC

Back 4

marginal factor costs

Front 5

marginal factor costs

Back 5

change in total factor costs
divided by
change in factor quantity

Front 6

MRP

Back 6

marginal revenue of product

Front 7

marginal revenue of product

Back 7

the change in total revenue
-over-
the change in the variable input

or by multiplying marginal physical product by marginal revenue

Front 8

profit maximizing equilibrium

Back 8

is where MRP is equal to MFC

Front 9

comparable worth doctrine

Back 9

wage rates for jobs should be based on characteristics of the job requirements

Front 10

statistical discrimination

Back 10

same qualifications applying for job, but 1 applicant graduated from harvard and the other from ASU so they hire the applicant from harvard; based on ascribed status

Front 11

NIT

Back 11

negative income tax

Front 12

negative income tax

Back 12

tax system that transfers increasing amounts of income to households earning incomes below some specified level; the lower the income, the more they get

Front 13

comparable worth

Back 13

Comparable worth is derived from the view that pay should be based on the characteristics of the job

Front 14

monopsony

Back 14

is a monopoly; MFC= D, then take down to supply level to get wage rate

Front 15

competitive labor market

Back 15

= equilibrium

prices of goods are stated in terms of the monetary unit

Front 16

in-kind transfer

Back 16

any non monetary benefit given to people
(social security is NOT an in-kind; medicade and food stamps are)

Front 17

the most unequal distribution of income is found in...

Back 17

less developed countries

Front 18

if supply in a market decreases because of higher marginal costs,

Back 18

both consumer AND producer surplus will be decreased
causes supply to shift inward

Front 19

because the US has a PROGRESSIVE income tax...

Back 19

the bottom 50% of federal income tax filers pays only 30% of federal income taxes

Front 20

wage discrimination

Back 20

think of EVERY possibility; unmarried men may not have build their career up enough yet; are young; etc

Front 21

the relationship between the market for products and the market for resources...

Back 21

An increase in demand for new homes will increase the demand for construction workers; CANT be a substitute or compliment; directly effect each other

Front 22

What condition would create less worry about the Social Security system?

Back 22

If the amount paid into the social security system by an individual was the minimum an individual could receive in retirement benefits

Front 23

According to the table above, if the product price is $x and the wage rate is $y per hour, how many workers should this firm hire?

Back 23

multiply product price times output per hour then find difference (equilibrium) which is MRP then find the wage rate

Front 24

After hiring 151 units of the variable input, labor, a firm determines the MRP to be $.30 and the MFC to be $.33. The firm should...

Back 24

produce less than 151 units of output.

BC their MFC is more than their MRP, they should decrease production

Front 25

economists a plausible explanation for labor market discrimination is...

Back 25

there is an overwhelming amount of statistical discrimination but essentially no personal prejudice in the work force today

Front 26

statistical discrimination

Back 26

discrimination based on ascribed status
giving preference to students/employees based on general performance statistics

Front 27

If in the negative income tax proposal the guaranteed income floor is $9,000 and the tax rate is 25%, what is the value of the breakeven income?

Back 27

$36,000

income floor rate divided by tax rate

Front 28

Economists like the negative income tax because, at least in theory, it

Back 28

reduces poverty without reducing efficiency

Front 29

quantity of labor of monopolistic companies will...

Back 29

always be the least Q of laborers along the MFC

Front 30

Lorenz curve

Back 30

banana curve; shows the degree of inequality that exists in the distributions of two variables; often used to illustrate the extent that income or wealth are distributed unequally in a particular society.

Front 31

Suppose, as a policymaker, that you could order a single change to reduce the incidence of poverty. Which of the following changes is most likely to be effective?

Back 31

Engineering a sustained period of economic growth; A general healthy economy is the best way to reduce poverty

Front 32

flat income tax

Back 32

NOT a percentage; it is a set dollar amount

Front 33

regressive income tax

Back 33

Poor charged 10%; rich 5%; EVENTHOUGH the rich end up making more all together

Front 34

progressive income tax

Back 34

generates more revenue from the rich than from the poor

Front 35

the Lorenz curve CAN be used to show...

Back 35

summary of distributions of income; how a given income is distributed among the pop; the fairest distribution of income; an equal distribution of income