×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide

Solutions for Chapter 8: The Open Economy: International Trade and Finance

Krugman's Macroeconomics for AP* | 1st Edition | ISBN: 9781429257305 | Authors: Margaret Ray, David A. Anderson

Full solutions for Krugman's Macroeconomics for AP* | 1st Edition

ISBN: 9781429257305

Krugman's Macroeconomics for AP* | 1st Edition | ISBN: 9781429257305 | Authors: Margaret Ray, David A. Anderson

Solutions for Chapter 8: The Open Economy: International Trade and Finance

Krugman's Macroeconomics for AP* was written by and is associated to the ISBN: 9781429257305. Chapter 8: The Open Economy: International Trade and Finance includes 13 full step-by-step solutions. Since 13 problems in chapter 8: The Open Economy: International Trade and Finance have been answered, more than 2395 students have viewed full step-by-step solutions from this chapter. This textbook survival guide was created for the textbook: Krugman's Macroeconomics for AP*, edition: 1. This expansive textbook survival guide covers the following chapters and their solutions.

Key Business Terms and definitions covered in this textbook
  • Arrow’s impossibility theorem

    a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences

  • circular-flow diagram

    a visual model of the economy that shows how dollars flow through markets among households and firms

  • discount rate

    the interest rate on the loans that the Fed makes to banks

  • diseconomies of scal

    the property whereby long-run average total cost rises as the quantity of output increases

  • firm-specific risk

    risk that affects only a single company

  • frictional unemployment

    unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

  • inflation tax

    the revenue the government raises by creating money

  • microeconomics

    the study of how households and firms make decisions and how they interact in markets

  • monopolistic competition

    a market structure in which many firms sell products that are similar but not identical

  • moral hazard

    the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior

  • Nash equilibrium

    a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen

  • nominal GDP

    the production of goods and services valued at current prices

  • positive statements

    claims that attempt to describe the world as it is

  • property rights

    the ability of an individual to own and exercise control over scarce resources

  • reserve ratio

    the fraction of deposits that banks hold as reserves

  • scarcity

    the limited nature of society’s resources

  • shortage

    a situation in which quantity demanded is greater than quantity supplied

  • strike

    the organized withdrawal of labor from a firm by a union

  • structural unemployment

    unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one

  • sunk cost

    a cost that has already been committed and cannot be recovered

×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide
×
Reset your password