Quiz #12

Question 0

The amount one worker (or other unit of input) adds to total cost; equals wage in perfectly competitive labor markets

Answer 0

Marginal cost of labor (marginal factor cost)

Question 1

The amount one worker or other variable input adds to total revenue

Answer 1

Marginal revenue product (MRP)

Question 2

A single or dominant buyer of labor; must raise wage to hire one more worker; MCL>wage

Answer 2

Monopsony

Question 3

When a union exists within a monopsony and wages are determined by collective-bargaining

Answer 3

Bilateral monopsony

Question 4

Condition in which costs or benefits of a transaction spillover to those not involved in the transaction; the cost or benefit is not accounted for the transaction price

Answer 4

Externality

Question 5

MSB>MPB; benefits of a transaction affect people outside the transaction; good is under produced externality corrected by a subsidy

Answer 5

Positive externality

Question 6

MSC>MPC; cost of transaction affect people outside the transaction; good is overproduced; externality corrected by a tax

Answer 6

Negative externality

Question 7

Cost incurred by a producer or manufacturer that does not count for spillover cost to society

Answer 7

Marginal private cost

Question 8

Cost to society from producing one more unit of output; a negative externality exists when MSC>MPC

Answer 8

Marginal social cost

Question 9

Benefits received solely by the consumers of a good or service that do not account for spillover benefits to society

Answer 9

Marginal private benefit

Question 10

Benefits to society from producing one more unit of output; a positive externality exist when MSB>MPB

Answer 10

Marginal social benefit

Question 11

Curve measuring the relative inequality of income distribution in an economy

Answer 11

Lorenz curve

Question 12

Statistical measure used to determine the income dispersion in a country

Answer 12

Gini coefficient