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Microeconomics Unit III - Factor Markets


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Chapter 25 - The Demand for Resources: We've completed our discussion of product markets, where firms are the suppliers and households the demanders. Now we turn our attention to the other side of the circular flow diagram, the Resource (or Factor) Market, where firms go to hire the productive resources. In the resource market firms are now the demanders, while households supply the productive resources in exchange for wages, rent, interest and profit.

Chapter 26 - Wage Determination: Why do workers in some jobs make so much more than in others? What accounts for the huge disparity in wages between rich and poor countries? Now we continue our study of resource markets, focusing on that for labor. Labor markets can be highly competitive or not competitive at all, which has implications for the level of wages paid and the quantity of workers hired.

Chapter 27 - "Rent, Interest and Profits"

Web Chapter 27 - "Resource and Energy"


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