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DISPOSABLE INCOME: The total income that can be used by the household sector for either consumption or saving during a given period of time, usually one year. This is the income left over after income taxes and social security taxes are removed and government transfer payments, like welfare, social security benefits, or unemployment compensation are added.

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Lesson 22: Factor Supply | Unit 4: Determinants Page: 19 of 25

Topic: Mobility <=PAGE BACK | PAGE NEXT=>

  • An important concept to consider: mobility.

  • Mobility is the ease with which resources or factors of production can move from one productive activity to another.
  • Some factors are highly mobile and thus are easily switched. Other factors are highly immobile and not easily switched.

  • Mobility generally takes one of two forms:

    • Geographical mobility
    • Occupational mobility

  • Factor mobility is most important to the price elasticity of factor supply.

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MANAGERIAL BEHAVIOR

A preference for maintaining the status quo over changing it based on relatively greater satisfaction generated by redundant information over novel information. Managerial behavior is well suited for keeping an existing business and complex organizations running smoothly and efficiently. This behavior is inclined to manage, to administer, and to apply existing rules and procedures. An alternative is entrepreneurial behavior, which is a preference for changing the status quo over maintaining it.

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GRAY SKITTERY
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Today, you are likely to spend a great deal of time going from convenience store to convenience store seeking to buy either a pleather CD case or a how-to book on fine dining. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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This isn't me! What am I?

A communal society, a prime component of Karl Marx's communist philosophy, was advocated by the Greek philosophy Plato.
"I do not believe in a fate that will fall on us no matter what we do. I do believe in a fate that will fall on us if we do nothing. "

-- Ronald Reagan, 40th US president

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Nash Equilibrium
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