ECSENOMICS Chapter 12 How Markets Determine Ine comes McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 12 How Markets Determine Incomes
ECSENOMICS The Share of labor in National Income T-82 Figure 12-1 80 70 65 ⊥⊥⊥⊥L⊥⊥ IIIIII⊥ 11|1I 1960 1980 1990 2000 Year McGraw-Hilllrwin Source: U.S. Department of Commerce
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. The Share of Labor in National Income T-82 Figure 12-1 Source: U.S. Department of Commerce
ECSENOMICS Demand for Factors Is Derived from S Demand for Goods They Produce T-83 Figure 12-2 (a)Commodity Demand (b) Derived Factor Demand E EE D Q Corn Cortland McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Demand for Factors Is Derived from Demand for Goods They Produce T-83 Figure 12-2
ECSENOMICS Demand for Inputs Derived through Marginal revenue Products T-84 Figure 12-3 点2 10 3 Labor inputs( workers) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Demand for Inputs Derived through Marginal Revenue Products T-84 Figure 12-3
ECSENOMICS Supply Curve for Factors of Production T-85 igure 12-4 Fi S B Factor quantity McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Supply Curve for Factors of Production T-85 Figure 12-4
ECSENOMICS Factor Supply and Derived Demand Interact to Determine Factor Prices and Income Distribution T-86 Figure 12-5 P Factor quantity McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Factor Supply and Derived Demand Interact to Determine Factor Prices and Income Distribution T-86 Figure 12-5
ECSENOMICS The Markets for Surgeons and Fast-Food Workers T-87 Figure 12-6 (a) Market for Surgeons (b)Market for Fast-Food Workers w DsS D Labor supply Labor supp oly McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. The Markets for Surgeons and Fast-Food Workers T-87 Figure 12-6
ECSENOMICS Differences in Earnings on Wealth T-88 Figure 12-7 (a)Super Rich (b) Middle Class K Wealth Wealth McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Differences in Earnings on Wealth T-88 Figure 12-7
ECSENOMICS Marginal Product Principles Determine Factor Distribution of Income T-89 Figure 12-8 Marginal roduct of labor Rent N Wages L Quantity of labor McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Marginal Product Principles Determine Factor Distribution of Income T-89 Figure 12-8
