Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
1.What does the term “derived demand” refer to?
|
p254
other things equal, the demand for a resource is an inverse relationshipbetweenthe priceof the resource and the quantity of the resourse demanded. is a term in economics, where demand for one good or service occurs as a result of demand for another. |
|
|
2.What is the difference between marginal product (MP) and marginal revenue product (MRP)?
|
p255
marginal product or additional output, resulting from using each additional unit of labor. marginal revenue product- the change in total revenue resulting from the use of each additional unit resource. |
|
|
3.What is the significance of the MRP=MRC rule?
|
p255
it will be profitable for a firm to hire additional units of a resource up to tje point at which that resource MRP is equal to MRC. In other word when an employees cost exceeds the cost of the product being product profit will be affected. |
|
|
4.Identify several factors that can alter the productivity of any resource in the long run.
|
p258
quantities of other resources technological advance quality of the variable resource |
|
|
5.What is the difference between the substitution effect, the output effect, and the net effect?
|
p259
substituion- a firm can substitute equipment for labor to increase output output-machinery cost has fallen output can increase output so labor can increase net- both effects are present |
|
|
6.Explain the concept of complementary resources.
|
p
Two or more resources that can substitute for one another and, when taken together, augment one another, so that the consumer requires less of them when taken together than when taken separately. |
|
|
7.Identify some factors that the fastest growing occupations have in common.
|
p260-261
they are service industry,technology |
|
|
8.What factors do the most rapidly declining occupations have in common?
|
p261
Labor saving technology change, automation, |
|
|
9.Identify some factors that influence the elasticity of demand for a resource.
|
p
|
|
|
10.What is the underlying rationale of the Least-Cost Rule?
|
p
|
|
|
11.What is the rationale of the profit-maximizing rule?
|
p
|
|
|
12.What is the Marginal Productivity Theory Of Income Distribution?
|
p
|
|
|
13.(Last Word) What economic principle does the Case of the ATMs illustrate?
|
p
|
