ECON 208 Lecture Notes - Lecture 9: Canada A National Rugby Union Team, Perfect Competition, Marginal Cost

• School: McGill University
• Department: Economics
• Course: ECON 208
• Professor: Irakli Japaridize

Document Summary

In the 19th century, economists emphasized the functional distribution of income. Focusing on the sources of income lost usefulness because of blurred distinctions between workers and capitalists . Modern economists place more emphasis on the size distribution of income. Fig 13-2: the lorenz curve for family income, 2010. If income distributed, the lorenz curve would be the diagonal. The farther the lorenz curve is from the diagonal, the less equal the income distribution. Canada"s tax-and-transfer system redistributed income from rich to poor (cid:0) reduces income inequality were equally. When market forces allocate resources among various products, they also determine factor incomes. The demand for any input is a derived demand. For example, since automobile constructive uses steel extensively, we say that the demand for steels if partly derived from the demand for automobiles. Derived demand links goods markets to factor markets. Marginal revenue product (mrp) is the increase in revenue after adding one unit of a factor.