ECO100Y5 Chapter Notes - Chapter 13: Demand Curve, Diminishing Returns, Marginal Product
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ECO100Y5 Full Course Notes
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About the size and functional distribution of income in canada. What determines a profit-maximizing firm"s demand for a factor. About the role of factor mobility in determining factor supply. How to distinguish between temporary and equilibrium factor-price differentials. About economic rent and how it relates to factor mobility. Adam smith and david ricardo were interested with the distribution of income among social classes: workers, capitalists and landowners. Karl marx had a different theory, which predicted that as growth occurred, capitalists would become relatively better off and workers would become relatively worse off. Functional distribution of income the distribution of national income among the major factors of production: labour, capital and land. Size distribution of income the distribution of income among individuals without regard to source of income. To measure and understand the income inequality between individuals, the size distribution of income is a better indicator than is the functional distribution of income.
