(BQ) Part 2 book "Microeconomics principles, problems, and policies" has contents: Wage determination, the demand for resources, income inequality, poverty, and discrimination, health care, international trade, agriculture - economics and policy,.and other contents. | 5 Part FIVE Microeconomics of Resource Markets and Government CHAPTER 16 The Demand for Resources CHAPTER 17 Wage Determination CHAPTER 18 Rent, Interest, and Profit CHAPTER 19 Natural Resource and Energy Economics CHAPTER 20 Public Finance: Expenditures and Taxes 16 C h a p t e r The Demand for Resources Learning Objectives Explain the significance of resource pricing. Convey how the marginal revenue productivity of a resource relates to a firm’s demand for that resource. List the factors that increase or decrease resource demand. Discuss the determinants of elasticity of resource demand. Determine how a competitive firm selects its optimal combination of resources. Explain the marginal productivity theory of income distribution. When you finish your education, you probably will look for a new job. Employers have a demand for educated, productive workers like you. To learn more about the 312 d emand for labor and other resources, we now turn from the pricing and production of goods and services to the pricing and employment of resources. Although firms come in various sizes and operate under different market conditions, each has a demand for productive resources. Firms obtain needed resources from households—the direct or indirect owners of land, labor, capital, and entrepreneurial resources. We shift our attention from the bottom loop of the circular flow model (Figure ), where businesses supply products that households demand, to the top loop, where businesses demand resources that households supply. This chapter looks at the demand for economic resources. Although the discussion is couched in terms of labor, the principles developed also apply to land, capital, and entrepreneurial ability. In Chapter 17 we will combine resource (labor) demand with labor supply to analyze wage rates. In Chapter 18 we will use resource demand and resource supply to examine the
