Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Physical capital Human capital Factor distribution of income Value of the marginal product Value of the marginal product curve Equilibrium value of the marginal product Rental rate Marginal productivity theory of income distribution Compensating differentials Unions Efficiency-wage model Time allocation Leisure Individual labor supply curve | wage differences across jobs that reflect the fact that some jobs are less pleasant or more dangerous than others. the time available for purposes other than earning money to buy marketed goods. the improvement in labor created by education and knowledge that is embodied in the workforce. the value of the additional output generated by employing one more unit of a given factor, such as labor. a graphical representation showing how the value of the marginal product of a factor depends on the quantity of the factor employed. manufactured productive resources, such as buildings and machines; often referred to simply as “capital.” the decision about how many hours to spend on different activities, which leads to a decision about how much labor to supply. the proposition that every factor of production is paid its equilibrium value of the marginal product. a model in which some employers pay an aboveequilibrium wage as an incentive for better performance. the cost, implicit or explicit, of using a unit of land or capital for a given period of time. the additional value produced by the last unit of a factor employed in the factor market as a whole. organizations of workers that try to raise wages and improve working conditions for their members by bargaining collectively. a graphical representation showing how the quantity of labor supplied by an individual depends on that individual’s wage rate. the division of total income among labor, land, and capital. |