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Solutions for Chapter 2: Economic Systems

Economics: Concepts and Choices: Student Edition 2008 | 1st Edition | ISBN: 9780618594030 | Authors: MCDOUGAL LITTEL

Full solutions for Economics: Concepts and Choices: Student Edition 2008 | 1st Edition

ISBN: 9780618594030

Economics: Concepts and Choices: Student Edition 2008 | 1st Edition | ISBN: 9780618594030 | Authors: MCDOUGAL LITTEL

Solutions for Chapter 2: Economic Systems

Economics: Concepts and Choices: Student Edition 2008 was written by and is associated to the ISBN: 9780618594030. Since 15 problems in chapter 2: Economic Systems have been answered, more than 5730 students have viewed full step-by-step solutions from this chapter. This expansive textbook survival guide covers the following chapters and their solutions. This textbook survival guide was created for the textbook: Economics: Concepts and Choices: Student Edition 2008, edition: 1. Chapter 2: Economic Systems includes 15 full step-by-step solutions.

Key Business Terms and definitions covered in this textbook
  • average revenue

    total revenue divided by the quantity sold

  • average total cost

    total cost divided by the quantity of output

  • average variable cost

    variable cost divided by the quantity of output

  • efficient markets hypothesis

    the theory that asset prices reflect all publicly available information about the value of an asset

  • inferior good

    a good for which, other things being equal, an increase in income leads to a decrease in demand

  • marginal cost

    the increase in total cost that arises from an extra unit of production

  • menu costs

    the costs of changing prices

  • mutual fund

    an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds

  • normal good

    a good for which, other things being equal, an increase in income leads to an increase in demand

  • normative statements

    claims that attempt to prescribe how the world should be

  • open-market operations

    the purchase and sale of U.S. government bonds by the Fed

  • opportunity cost

    whatever must be given up to obtain some item

  • principal

    a person for whom another person, called the agent, is performing some act

  • quantity demanded

    the amount of a good that buyers are willing and able to purchase

  • quantity supplied

    the amount of a good that sellers are willing and able to sell

  • shoe-leather cost

    the resources wasted when inflation encourages people to reduce their money holdings

  • shortage

    a situation in which quantity demanded is greater than quantity supplied

  • signaling

    an action taken by an informed party to reveal private information to an uninformed party

  • transaction costs

    the costs that parties incur in the process of agreeing to and following through on a bargain

  • union

    a worker association that bargains with employers over wages, benefits, and working conditions

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