Pricing and the Determination of Incomes
the first time you go through each of these topics you should click on
the following items in sequence.
to the lecture
a quick quiz
|Now that we have
developed the theory of how the market price of produced goods and services
is determined we can move on to apply the same kind of analysis to explain
how the prices of labour and other productive factors are determined.
To show how the forces of supply
and demand already explained with reference to product markets work in
the same way to determine the prices of productive services -- and the
incomes of those who own them.
To extend the earlier treatment
of land, labour and capital as productive inputs
To introduce the concept of
Ricardian rent in the context of the historical conflict between land-owners
and manufacturers in 19th Century Britain
To illustrate the use of Lorenze
curves and Gini coefficients to conceptualize and measure differences in
the distribution of income in society
To introduce some issues of
justice and equity in relation to the distribution, and redistribution