Questions for Review without Answers
Chapter 16. Market Theory II. Factor Markets. Income Distribution. Wage Theory
I. Basics
1) Define human capital.
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2) Factor market theory is the neo-classical theory of income distribution. Can you explain that?
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3) Are money, knowledge and technology factors of production?
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II. Factor Markets
4) What kinds of incomes are there?
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5) How do governments in capitalist economies intervene in the distribution of incomes made by factor markets?
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III. Factor Prices
6) How do economists explain how much of a factor is demanded?
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7) How do economists explain how much a factor costs?
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8) Demand for factors is derived demand. What does that mean?
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9) What determines supply of factors?
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IV. Present Value. The Theory of Investment in Capital and Land
10) Please define present value.
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11) Do you remember the formula to calculate present value of capital? (You need N for net receipts and i for interest and you need indices for the years.)
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12) Is present value low or high when interest and the number of years are high?
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V. Wage Theory
13) Why do many economists argue that unemployment is voluntary?
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14) Please explain why the demand curve for labour and the curve illustrating the value of its marginal product are identical.
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15) What are efficiency wages?
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VI. An Excursus on Ricardo's Iron Law of Wages
16) What did the iron law of wages postulate?
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VII. An Excursus on the Division of Labour and the Treatment of Labour
17) Explain why Fordism and Taylorism were the logical continuation of the introduction of the factory system.
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18) What is the difference between mechanisation and automation?
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19) What is the Hawthorne effect?
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20) What is Theory Y?
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