Midterms: ICC and Engel Curve

• it shows the amount of a commodity that the consumer will purchase per unit of time at various levels of income

  engel's curve
• It shows the effect of a change in price of a commodity on the quantity of it bought, ceteris paribus.

  price consumption curve
• Workers get their _________ for their labor

  wages
• Landlords get their _________

  rent
• Entrepreneurs acquire their ___________

  normal profit
• these are goods produced by man

  economic goods
• Goods which are produced without costs


  free goods
• factors of production

  1. land
  2. labor
  3. capital
  4. entrepreneur
• Is the organizer and coordinator of the land, labor and capital


  entrepreneur
• is a finished product which is used to produce other goods

  capital
• the original gift of nature

  land
• An exertion of physical and mental efforts of individuals

  labor
• The process of transforming both fixed and variable inputs into finished goods and services

  theory of production
• Such technical relationship between the application of inputs and the resulting maximum obtainable output

  production function
• Also known as the law of diminishing marginal productivity It is a basic law of economics and technology

  law of diminishing returns
• law of diminishing retunrs are also called

  law of diminishing marginal productivity
• is defined as the additional product brought about by one additional unit of a variable input

  marginal product
• refers to the quantity of output produced per unit of labor input

  average product