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UNDISTRIBUTED CORPORATE PROFITS: Commonly termed retained earnings, these are corporate profits that are neither paid as corporate profits taxes nor paid to shareholders as dividends. Undistributed corporate profits are important for the derivation of personal income from national income. Because undistributed corporate profits are income that is earned by the shareholders, but not received, it falls in the general category of income earned but not received (IEBNR), and is subtracted from national income in the derivation of personal income.

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Lesson 14: Production | Unit 3: Product Curves Page: 12 of 25

Topic: Average Product Curve <=PAGE BACK | PAGE NEXT=>

  • The average product curve:

  • The average product curve is a curve that graphically illustrates the relation between average product and the quantity of the variable input, holding all other inputs fixed.

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ELASTICITY ALTERNATIVES, DEMAND

Five categories of the price elasticity of demand that reflect the entire range of the relative responsiveness of a change in quantity demanded to a change in price. These five alternatives--perfectly elastic, relatively elastic, unit elastic, relatively inelastic, and perfectly inelastic--are often illustrated by different demand curves. The price elasticity of supply is also reflected by five comparable alternatives.

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The earliest known use of paper currency was about 1270 in China during the rule of Kubla Khan.
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