BSB113 Chapter Notes - Chapter 7: Marginal Revenue, Marginal Product, Human Capital
Document Summary
Human capital: the accumulated training and skills that workers acquire from education and training or their life experiences: changes in technology: as new and better machinery and equipment are developed, workers become more productive. However, some technology replaces workers: changes in the price of the product, changes in the quantity of other inputs, changes in the number of firms in the market. The supply of labour: the market supply curve of labour and the factors that shift it, increase in population, changing demographics, changing alternatives. Equilibrium in the labour market: the effect on equilibrium wages of a shift in labour demand. Personnel economics = the application of economic analysis to human resources issues: straight-time pay or commission/pi c-rate pay, other, difficulty measuring output, concerns about quality, worker dislike of risk.
