Outline The Production Function The Demand for Labor The Supply of Labor Labor Market Equilibrium Unemployment Relating Output and Unemployment Okuns Law Interesting Questions If oil shocks hurt our economy should we look to alternate fuels If your salary went up permanently would you work more or less If you received a onetime increase to work extra hours would you Should minimum wage increase Are the recent increase the right increases The Production Function What goes into the production of output Factors of production Capital (K) Labor (N) Others (land, energy) Technology and management Our production function is going to be YAF(K,N) The parameter A is total factor productivity. Kinda like technology. There is a special form of the production function called Cobb-Douglas that actually shows a stable relationship for the U.S. economy. YAK.3N.7. We have no way of measuring A directly. It is found by solving the production function for A. Taking 2004 for example 10756(y)A11249.3139.3.7 Solving for A we get a productivity of 20.68. What does the production function look like Ok what do we know If we add more inputs then we get more output. But, the increase is going to keep getting smaller because of diminishing marginal product as inputs increase. Ex. Pizza Company. (Holding Workers Constant) EMBED Excel.Chart.8 s MPK is always positive Diminishing marginal productivity of capital says that MPK declines as K rises. We can make all of the same arguments for graphing output against labor holding ovens constant. EMBED Excel.Chart.8 s Number of WorkersNumber of Pizzas00110218324428530630730 What Shifts the Production Function Supply shocks Supply shock productivity shock a change in an economys production function Supply shocks affect the amount of output that can be produced for a given amount of inputs Shocks may be positive (increasing output) or negative (decreasing output) Examples weather, inventions and innovations, government regulations, oil prices Let us take a look at an adverse supply shock that will lower the MPN. Summary of supply shocks Supply shocks cause shifts in the production function. Negative shocks usually it is a shift down of the production curve and the slope of the production function decreases at each level of input. Positive shock usually it is a shift outward of the production curve and the slope of the production function will increase at each level of output. The Demand for Labor The question is really how much labor do firms want to use In order to get a meaningful answer we need to make some important assumptions Hold the capital stock fixed Short-run we dont buy new ovens or factories Workers are all alike If we look at a large segment of people in the same job area this is not such a bad assumption. Labor market is competitive Says that there is a prevailing wage set for a given job. i.e. all economists make 10/hr. Firms want to maximize their profits I think everyone can live with this assumption. Back to the Pizza example Ok let us assume each pizza sells for 20. MPNP is the Marginal Revenue product of labor. MRPN tells us how much additional revenue that one extra worker would bring to the pizza shop if he was hired. Number of WorkersNumber of PizzasMPNMPN P (MRPN)0010200 1108160 2186120 324480 428240 5300063000730 So how many workers is the pizza shop going to hire Let us say that the going nominal wage is 150 dollars. Well we can see that the pizza shop will make a profit if they hire the first worker (the worker is providing 200 of revenue and only costs 150) they will also hire the second worker for the same argument. But, they will not hire the third worker because that worker is only bringing an addition 120 of revenue but will cost 150. What happens if the prevailing nominal wage was to decrease to 110 Then they would hire the third worker. So in summary if the MRPN is higher than the prevailing nominal wage there is an incentive to hire additional workers, if…
are multiple forms of ‘law’ and that most are not part of the formal system.
Legal pluralism: laws may exist in harmony and mutual
informal control: the mechanisms and practices of everyday life that encourage us to follow the rules and traditions set forth by family, social groups or the larger society.
socialization: the process by which we learn the rules, norms, and expectations of the world around us.
who to interact with and how to behave
rules can refer to behavior, but can also include…
Economics lecture recording notes
8/10/12 lecture 3
Law of demand:
Others things being equal, the higher the price of a good, the lower is the quantity demanded. What we mean by this is these are things we hold constant so as not to get confused by the effects of other things. So when we look at the effects of price we don’t want any other confounding factors (such as the ones named below) to move at the same time. So we say the higher the price the lower the quantity demanded keeping other things…
September 23, 2014
Functionalism -> Macro
S.I -> Micro
Conflict theory -> Macro
Functionalism -> Organs of society
Intuitions of society.
Stasis would stay around long time until it disappears
Change is ongoing.
The Sociological Imagination
Published in 1959
Series Of Traps
People experience life as series of traps
Seek the answers in their immediate existence, jobs, family, careers
Internalize their cause, individualize the…
5.0 SUMMARY AND CONCLUSIONS
Objectives of Lecture 3:
At the end of this lecture, you should be able to:
determine when income from personal exertion will be assessable;
ascertain whether a business is being carried on for taxation purposes;
evaluate the criteria to determine if a taxpayer is carrying on a business;
determine when income from property will be assessable; and
apply the tax provisions relating to trading stock.
Week 3 Reading:
1. 2015 CCH Australian Master Tax Guide:…
Integrated Learning System
Week 3, Lecture 1
More Discrete Probability
At the end of this presentation you should be able
to find probabilities using the geometric
distribution and the Poisson distribution.
A geometric distribution is a discrete probability
distribution of a random variable x that
satisfies the following conditions:
1. The trial is repeated until a success occurs.
2. The repeated trials are independent.
3. The probability of success p is…
measurement attributes used are
Historical cost (historical proceeds)
Current market value
Net realizable (settlement) value
Present (or discounted) value of future cash flows
Recognition and Measurement—
A full set of financial statements for a period
should show the following
Financial position at the end of the period
Earnings (net income)
Comprehensive income (total nonowner change in
Cash flows during the period
Investments by and distributions…
*Unit 3 Lecture 2
rxns that transfer electrons (e-)
OXIDATION – the LOSS of e-’s
REDUCTION – the GAIN of e-’s
LEO the lion goes GER
Loss of Electrons = Oxidation
Gain of Electrons = Reduction
*A single piece of iron (II) is immersed in a solution of copper
* This is a single replacement reaction…
Fe (s) + CuSO4 (aq) FeSO4 (aq) + Cu (s)
Make a net ionic equation……
*Unit 3 Lecture 5
*Allow you to solve for the unknown
concentration of an acid or base using
the principles of neutralization reactions
*Let’s stroll through Chem Honors
What are Titrations
The process of adding just enough acid or
base to neutralize the solution
Remember that acids and bases react with
each other to make a neutral salt solution.
• In the following examples, label the acid, base,
HCl(aq) + NaOH(aq)
refused, or ignored in specific social settings is an ongoing
Winner (1985/1999) draws our attention to the possible politics embodied in technical
things, but he doesn’t provide us with a method for analysing technology.
The next lecture…
• We will explore the effects of social relations
and institutions on particular technologies
– SST: The social shaping of technology
(Mackenzie and Wajcman, 1985; Williams and
– SCOT: The social construction of technology…
Λ(xi β) =
1 + exp(xi β)
where G (z ) is the cumulative distribution function for a standard
logistic random variable, z.
Aslanidis (URV & UNSW)
= G (xi β) + i
1 + exp(xi β)
Binary Model: Presentation
3 / 14
G (xi β) = Φ(xi β) =
Z xi β
where Φ(z ) is the cumulative distribution function for a standard
normal random variable, z and φ(v ) is the standard normal density.
φ(v ) = (2π )
Aslanidis (URV & UNSW)