Chapter 4 Micro Definitions Turbo Quiz

Becker's theory of discrimination: Employers may be prepared to experience higher ??? ??? ??? rather than employ members of certain groups

• Economies of scale

• Diseconomies of scale

• Unit labour costs

• Total fixed cost

Bilateral monopoly: A market structure consisting of both a ??? (a single seller) and a ??? (a single buyer)

• Oligopoly; Monopoly

• Monopoly; Monopsony

• Monopsony; Oligopoly

• Monopoly; Monopolistic competition

Demand for a factor of production or a good which derives not from the factor or the good itself but from the goods it produces

• Competitive demand

• Joint demand

• Derived demand

• Composite demand

Efficiency wage theory: The idea of the efficiency wage theory is that increasing wages can lead to increased labour ???

Barriers to the movement of workers between different areas

• Geographic immobility of labour

• Occupational immobility of labour

• Structural unemployment

• Barriers to entry

A higher wage means workers can achieve a target income by working less hours. Therefore, an individual will want to work fewer hours

• Income effect of a wage rise

• Pecuniary factors

• Non-pecuniary factors

• Substitution effect of a wage rise

Differences between the income levels of different groups within the economy

• Income inequality

• Wealth inequality

• Gini coefficient

• Lorenz curve

Marginal (???) product: The change in output that results from employing one more worker

Marginal revenue product: The change in a firm’s revenue resulting from employing one more worker (??? x ???)

• P x Q

• AVC x Quantity of labour employed

• Total cost of labour x Q

• MPP x MR

A single buyer (of labour)