ECN 104 Lecture Notes - Lecture 13: Monopsony, Diminishing Returns, Marginal Revenue Productivity Theory Of Wages

What is the market for factors of production?

Can I get answers about these questions??

These questions are about Chapter 16-22 in Principles of Microecnomics sixth editon.

Monopolistic competition

· What makes a market monopolistically competitive?

· How do monopolistically competitive firms decide how much to produce and what price to set?

· How to monopolistically competitive firms make short-run and long-run choices?

· What is the role of advertising?

Oligopoly and Game Theory

· What is the prisoner’s dilemma and what are some applications?

· What is collusion and why is it difficult? What are some things that can make it harder or easier to collude?

· What is a dominant strategy?

· How can you find a Nash equilibrium in a game where a player has a dominant strategy?

Markets for Factors of Production

· How do profit maximizing firms decide how much of a factor of production (such as labor) to use? In other words what is the demand for factors of production?

· What changes the demand for factors of production?

· What determines the supply for labor? Supply for other factors of production?

· How are the rental prices and wages determined in a competitive market for factors of production?

Earnings and Discrimination

· What are some reasons why different people have different labor earnings?

· What are some difficulties in measuring discrimination?

· Why might firms that discriminate have difficulty competing?

· Why might a firm find it profitable to discriminate?

Income Inequality and Poverty

· What are some political philosophies regarding what the government should do to decrease poverty or income inequality?

· What are some policies that can reduce poverty? What are the strengths and weaknesses of these policies?

Consumer Choice

· What is the consumers budget constraint?

· How does a consumer choose how much of different goods to consume?

· What are the income and substitution effects?

· How does the demand curve relate to the consumer choice problem?

· How does the consumer choice problem relate to labor supply and borrowing/lending behavior?

Asymmetric Information and Healthcare

· What is moral hazard?

· What is adverse selection?

· How do these two concepts relate to the market for insurance and healthcare?

· How do insurance companies try to deal with adverse selection and moral hazard?

1. Which of the following groups of countries are all advanced economies?

QUESTION 2

1. The most people live in ________ economies and the fewest people live in ________ economies.

QUESTION 3

1. Households and firms in the U.S. economy interact with those in the rest of the world in the ________ market and the ________ market.

QUESTION 4

1. As a factor of production, oil reserves are counted as

QUESTION 5

1. ________ the owners of the factors of production, while ________ what amounts of those factors to hire.

QUESTION 6

1. The emerging market economies are

QUESTION 7

1. In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income was

QUESTION 8

1. Items bought by individuals to provide personal enjoyment are termed

QUESTION 9

1. In the advanced economies, ________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment

QUESTION 10

1. The productive resource that includes all the "gifts of nature" is called

QUESTION 11

1. What would be an example of government good?

QUESTION 12

1. The world population is approximately ________ people.

QUESTION 13

1. Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as

QUESTION 14

1. Of the following, the federal government obtains most revenue from

QUESTION 15

1. Items bought by businesses to help produce other goods and services are called

QUESTION 16

1. The majority of the income earned in the United States is paid in

QUESTION 17

1. Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market

QUESTION 18

1. The United States possesses a large amount of human capital. As a result of this fact, in the United States, there is a

QUESTION 19

1. Which of the following correctly lists the categories of factors of production?

QUESTION 20

1. Which of the following correctly lists the categories of factors of production?

QUESTION 21

1. In the United States, the poorest 20 percent of households receive roughly ________ percent of total income.

QUESTION 22

1. What would be an example of a consumption service?

QUESTION 23

1. The total value of capital in the United States is around

QUESTION 24

1. An export good is a good produced

QUESTION 25

1. ________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.