ECO 2114 Study Guide - Midterm Guide: Progressive Alliance Of Socialists And Democrats, Marginal Revenue Productivity Theory Of Wages, Reservation Wage

• School: University of Ottawa
• Department: Economics
• Course: ECO 2114
• Professor: David Gray

Document Summary

Circular-flow diagram: the global economy is divided into 3 types of markets. Output markets, input markets, & money markets: actors: households & firms (also government & foreign sector, flows: income & expenditure (flow = x/unit of time, e. g m4g/s is at 12:00 and firms is at 9:00, markets: Markets for goods/services (m4g/s), households buy & firms sell. Markets for the factors of production (m4fop), households sell & firms buy. Labour markets: 3 primary factors of production (input market): land, labour (l), & capital (k) Sole source of income for most people, though some have k and property income too: labour"s share has declined over the past 2 decades, perhaps due in part to , globalization. Teacher says it"s basically gradual process of international trade. Ppl can lose jobs to other people who accept lower wages: rapid technological change. Labour replaced by capital: the sharing economy. Ex: uber: the essential economic forces are s&d.