How are resources traded in the factor markets and the distribution of factor income. Concept Introduction: Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. Factor income refers to the income received by the factors of production for producing goods and services.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem aWYWL

To determine

How are resources traded in the factor markets and the distribution of factor income.

Concept Introduction:

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption.

Factor income refers to the income received by the factors of production for producing goods and services.

Expert Solution & Answer

Explanation of Solution

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. These factors are brought to the factor market where they are traded at a price known as the factor price. Factor prices play an important role in the allocation of these resources. The factors of production determine the supply of factors in the factor market and the producers determine the demand for these factors based on their scale of operation.

Like a simple goods market, the intersection of these supply and demand curves for factors determine their factor price and their equilibrium quantity.

These factor prices are also income received by the factors for producing goods. Factor distribution of income refers to the division of total income generated in the process of production. Thus, factor prices determined by the forces of supply and demand determine the factor distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The table below shows pizza topping preferences for Marcus, Dakota, and Austin, and that each individual has strictly transitive preferences. Suppose that three individuals make up our "society." In this society, prefer pepperoni to cheese pizza; _prefer cheese to supreme; and prefer supreme to pepperoni. This example illustrates that _ Person Marcus Dakota Austin 0000 First Preference Pepperoni Supreme Cheese Second Preference Cheese Pepperoni Supreme Third Preference Supreme Cheese Pepperoni two-thirds; two-thirds; two-thirds; even if individuals' preferences might satisfy the transitive property, societal preferences may not. two-thirds; two-thirds; everyone; if individuals' preferences satisfy the transitive property, societal preferences must also. two-thirds; two-thirds; everyone; even if individuals' preferences might satisfy the transitive property, societal preferences may not. two-thirds; two-thirds; two-thirds; if individuals' preferences satisfy the transitive property,…

Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & criminology professors. Assume that there are an equal number of economics and criminology professors. Assume further that econ professors all have the same level of health and criminology professors all have the same level of health. In 2020, every professor was offered a full insurance contract with no premium. In 2021, HU charged any employee who wanted to keep health insurance the actuarially fair premium based on 2020 expenditures. This premium would be equal to and, as a result,professors dropped their coverage in 2021. _ 2020 2021 Insured? Avg. Expenditures Insured? Avg. Expenditures Economics Professors Criminology Professors Yes Yes $25,000 $15,000 000000 $15,000; criminology $25,000; econ $20,000; econ $15,000; econ $20,000; criminology $25,000; criminology ??? $28,000 ??? $10,000

Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & criminology professors. Assume that there are an equal number of economics and criminology professors. Assume further that econ professors all have the same level of health and criminology professors all have the same level of health. There is evidence of 2021 Insured? Avg. Expenditures Insured? Avg. Expenditures 2020 Economics Professors Criminology Professors Yes. Yes $25,000 $15,000 0000 ??? ??? $28,000 $10,000 I. moral hazard because in 2021 criminology professors dropped their coverage and health expenditures went down. II. adverse selection because in response to rising premiums after 2020, the professors with lower health expenditure dropped coverage Both I and II neither I nor II

Answer 2

Question

Chapter 19, Problem aWYWL

To determine

How are resources traded in the factor markets and the distribution of factor income.

Concept Introduction:

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption.

Factor income refers to the income received by the factors of production for producing goods and services.

Expert Solution & Answer

Explanation of Solution

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. These factors are brought to the factor market where they are traded at a price known as the factor price. Factor prices play an important role in the allocation of these resources. The factors of production determine the supply of factors in the factor market and the producers determine the demand for these factors based on their scale of operation.

Like a simple goods market, the intersection of these supply and demand curves for factors determine their factor price and their equilibrium quantity.

These factor prices are also income received by the factors for producing goods. Factor distribution of income refers to the division of total income generated in the process of production. Thus, factor prices determined by the forces of supply and demand determine the factor distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem aWYWL

To determine

How are resources traded in the factor markets and the distribution of factor income.

Concept Introduction:

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption.

Factor income refers to the income received by the factors of production for producing goods and services.

Expert Solution & Answer

Explanation of Solution

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. These factors are brought to the factor market where they are traded at a price known as the factor price. Factor prices play an important role in the allocation of these resources. The factors of production determine the supply of factors in the factor market and the producers determine the demand for these factors based on their scale of operation.

Like a simple goods market, the intersection of these supply and demand curves for factors determine their factor price and their equilibrium quantity.

These factor prices are also income received by the factors for producing goods. Factor distribution of income refers to the division of total income generated in the process of production. Thus, factor prices determined by the forces of supply and demand determine the factor distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem aWYWL

To determine

How are resources traded in the factor markets and the distribution of factor income.

Concept Introduction:

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption.

Factor income refers to the income received by the factors of production for producing goods and services.

Expert Solution & Answer

Explanation of Solution

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. These factors are brought to the factor market where they are traded at a price known as the factor price. Factor prices play an important role in the allocation of these resources. The factors of production determine the supply of factors in the factor market and the producers determine the demand for these factors based on their scale of operation.

Like a simple goods market, the intersection of these supply and demand curves for factors determine their factor price and their equilibrium quantity.

These factor prices are also income received by the factors for producing goods. Factor distribution of income refers to the division of total income generated in the process of production. Thus, factor prices determined by the forces of supply and demand determine the factor distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem aWYWL

To determine

How are resources traded in the factor markets and the distribution of factor income.

Concept Introduction:

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption.

Factor income refers to the income received by the factors of production for producing goods and services.

Expert Solution & Answer

Explanation of Solution

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. These factors are brought to the factor market where they are traded at a price known as the factor price. Factor prices play an important role in the allocation of these resources. The factors of production determine the supply of factors in the factor market and the producers determine the demand for these factors based on their scale of operation.

Like a simple goods market, the intersection of these supply and demand curves for factors determine their factor price and their equilibrium quantity.

These factor prices are also income received by the factors for producing goods. Factor distribution of income refers to the division of total income generated in the process of production. Thus, factor prices determined by the forces of supply and demand determine the factor distribution of income.

Answer 6

Chapter 19, Problem aWYWL

To determine

How are resources traded in the factor markets and the distribution of factor income.

Concept Introduction:

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption.

Factor income refers to the income received by the factors of production for producing goods and services.

Expert Solution & Answer

Explanation of Solution

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. These factors are brought to the factor market where they are traded at a price known as the factor price. Factor prices play an important role in the allocation of these resources. The factors of production determine the supply of factors in the factor market and the producers determine the demand for these factors based on their scale of operation.

Like a simple goods market, the intersection of these supply and demand curves for factors determine their factor price and their equilibrium quantity.

These factor prices are also income received by the factors for producing goods. Factor distribution of income refers to the division of total income generated in the process of production. Thus, factor prices determined by the forces of supply and demand determine the factor distribution of income.

Answer 7

Chapter 19, Problem aWYWL

To determine

How are resources traded in the factor markets and the distribution of factor income.

Concept Introduction:

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption.

Factor income refers to the income received by the factors of production for producing goods and services.

Answer 8

Expert Solution & Answer

Explanation of Solution

Factors refer to resources like land, labor, capital and human capital which are used in the production of goods and services meant for final consumption. These factors are brought to the factor market where they are traded at a price known as the factor price. Factor prices play an important role in the allocation of these resources. The factors of production determine the supply of factors in the factor market and the producers determine the demand for these factors based on their scale of operation.

Like a simple goods market, the intersection of these supply and demand curves for factors determine their factor price and their equilibrium quantity.

These factor prices are also income received by the factors for producing goods. Factor distribution of income refers to the division of total income generated in the process of production. Thus, factor prices determined by the forces of supply and demand determine the factor distribution of income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 19 - Prob. aWYWL Ch. 19 - Prob. bWYWL Ch. 19 - Prob. cWYWL Ch. 19 - Prob. dWYWL Ch. 19 - Prob. 1QFT Ch. 19 - Prob. 2QFT Ch. 19 - Prob. 3QFT Ch. 19 - Prob. 1P Ch. 19 - Prob. 2P Ch. 19 - Prob. 3P

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions