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INCOME EARNED BUT NOT RECEIVED: Abbreviate IEBNR, this is the income earned by factors of production, but not received by members of the household sector. The three types of income earned but not received by the factors of production are Social Security taxes, corporate profits taxes, and undistributed corporate profits. In each case a factor of production has rightfully "earned" the income by contributing to valuable production contained in gross domestic product. However, because this income is not paid to the factor and it is not income received by the household sector. IEBNR is subtracted from national income to calculate personal income.

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Lesson 19: Money Creation | Unit 4: The Multiplier Page: 16 of 23

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A multiplier captures the magnified relationship between an activity and the triggering event.The money creation process:
  • The activity is the deposit creation.
  • The trigger event is extra bank reserves.
The multiplier:
  • In our example, the banking system creates $1,000 of deposits from $100 worth of reserves.
  • The deposit multiplier equals 10: Each $1 of extra reserves triggers 10 times the amount in deposits.
D = mR

D = Number of deposits created.
R = Number of reserves added to the banking system.
m = The value of the multiplier (10 in the example).


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MARGINAL FACTOR COST, PERFECT COMPETITION

The change in total factor cost resulting from a change in the quantity of factor input employed by a perfectly competitive firm. Marginal factor cost, abbreviated MFC, indicates how total factor cost changes with the employment of one more input. It is found by dividing the change in total factor cost by the change in the quantity of input used. Marginal factor cost is compared with marginal revenue product to identify the profit-maximizing quantity of input to hire.

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APLS

GREEN LOGIGUIN
[What's This?]

Today, you are likely to spend a great deal of time at a dollar discount store hoping to buy either a replacement battery for your pocket calculator or a how-to book on home remodeling. Be on the lookout for strangers with large satchels of used undergarments.
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This isn't me! What am I?

A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
"The greatest things ever done on Earth have been done little by little. "

-- William Jennings Bryan

RGDP
Real Gross Domestic Product
A PEDestrian's Guide
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