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ZERO COUPON BOND: Also termed a zero bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay interest, zero coupon bonds are sold at a discount. For example, a $10,000 zero coupon bond that matures in one year, would generate a 10% return if it sold at a discount of $9,000.

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Lesson 21: Factor Demand | Unit 3: The Curve Page: 13 of 24

Topic: Marginal Revenue Product Curve <=PAGE BACK | PAGE NEXT=>

  • To understand factor demand, we MUST understand marginal revenue product.

  • This means to derive the factor demand curve we MUST first identify the marginal revenue product curve.

  • The marginal revenue product curve is a graphical plot of the relation between marginal revenue product and the quantity of input.

  • This marginal revenue product curve can be used to derive the factor demand curve.


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CONSUMER CONFIDENCE, AGGREGATE DEMAND DETERMINANT

One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and which shifts the aggregate demand curve when it changes. An increase in consumer confidence causes an increase (rightward shift) of the aggregate demand curve. A decrease in consumer confidence causes a decrease (leftward shift) of the aggregate demand curve. Other notable aggregate demand determinants include interest rates, federal deficit, inflationary expectations, and the money supply.

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Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors looking to buy either several magazines on computer software or a T-shirt commemorating the second moon landing. Be on the lookout for strangers with large satchels of used undergarments.
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Sixty percent of big-firm executives said the cover letter is as important or more important than the resume itself when you're looking for a new job
"I can feel guilty about the past, apprehensive about the future, but only in the present can I act."

-- Abraham Maslow, Psychologist

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