EPF4 Effects of Supply and Demand
Demand- a consumer’s desire and willingness to pay a price for a specific good or service
Human Capital - The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
How skills impact your pay - The more skilled a worker is, the more valuable they are to a company and the higher their pay will be.
Connection between education and income - The higher an education someone receives the more skilled they are. This results in a higher income.
Salary - A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially to a profession worker.
Wage - A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.
Production - The action of making or manufacturing from components or raw materials, or the process of being manufactured.
Fixed Cost - Fixed costs are expenses that do not change as a function of the activity of a business, within the relevant period.
Variable Cost - Variable costs are expenses that change or vary with the level of output.
Total Cost - Total cost refers to the total expense incurred in reaching a particular level of output.
Derived Demand - A demand for a commodity, service, etc. that is a consequence of the demand for something else.
Income Potential - The theoretical amount of income that is possible from a particular level of output.