Quiz #12 Flashcards Preview

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Flashcards in Quiz #12 Deck (13):
0

The amount one worker or other variable input adds to total revenue

Marginal revenue product (MRP)

1

The amount one worker (or other unit of input) adds to total cost; equals wage in perfectly competitive labor markets

Marginal cost of labor (marginal factor cost)

2

A single or dominant buyer of labor; must raise wage to hire one more worker; MCL>wage

Monopsony

3

When a union exists within a monopsony and wages are determined by collective-bargaining

Bilateral monopsony

4

Condition in which costs or benefits of a transaction spillover to those not involved in the transaction; the cost or benefit is not accounted for the transaction price

Externality

5

MSB>MPB; benefits of a transaction affect people outside the transaction; good is under produced externality corrected by a subsidy

Positive externality

6

MSC>MPC; cost of transaction affect people outside the transaction; good is overproduced; externality corrected by a tax

Negative externality

7

Cost incurred by a producer or manufacturer that does not count for spillover cost to society

Marginal private cost

8

Cost to society from producing one more unit of output; a negative externality exists when MSC>MPC

Marginal social cost

9

Benefits received solely by the consumers of a good or service that do not account for spillover benefits to society

Marginal private benefit

10

Benefits to society from producing one more unit of output; a positive externality exist when MSB>MPB

Marginal social benefit

11

Curve measuring the relative inequality of income distribution in an economy

Lorenz curve

12

Statistical measure used to determine the income dispersion in a country

Gini coefficient