Search results
Results from the WOW.Com Content Network
A way of modelling discrimination in the workplace when dealing with wages are Gary Becker's taste models. Using taste models, employer discrimination can be thought of as the employer not hiring the minority worker because of their perceived cost of hiring that worker is higher than that of the cost of hiring a non-minority worker, which ...
Market price is a familiar economic concept: it is the price that a good or service is offered at, or will fetch, in the marketplace. It is of interest mainly in the study of microeconomics. Market value and market price are equal only under conditions of market efficiency, equilibrium, and rational expectations.
The labor market demand curve is the MRPL curve. The curve shows the relationship between the quantity demanded and the wage rate holding the marginal product of labor and the output price constant. The units of labor are on the horizontal axis and the price of labor, w (the wage rate) on the vertical axis. The price of labor and the quantity ...
Keynes's simplified starting point is this: assuming that an increase in the money supply leads to a proportional increase in income in money terms (which is the quantity theory of money), it follows that for as long as there is unemployment wages will remain constant, the economy will move to the right along the marginal cost curve (which is ...
The labor theory of value (LTV) is a theory of value that argues that the exchange value of a good or service is determined by the total amount of "socially necessary labor" required to produce it. The contrasting system is typically known as the subjective theory of value.
Because only there does a system of price-equations exist within a universal market, which can practically reduce the value of all forms and quantities of labour uniformly to sums of money, so that any kind of labour becomes an interchangeable, tradeable good or "input" with a known price tag – and is also practically treated as such. [3]
Uncultivated land has a price, even if there is no labor involved. The price of land is explained by the theory of rent. Both Ricardo and Marx developed theories of land-rent based on the LTV. Paper money—according to Marx, "[t]he function of gold as coin becomes completely independent of the metallic value of that gold.
The price system is an indispensable communications network for plan coordination among entrepreneurs. Increases and decreases in prices inform entrepreneurs about the general economic situation, to which they must adjust their own plans. As for socialism, Mises (1944) and Hayek (1937) insisted that bureaucrats in individual ministries could ...