Contemporary Economics 2nd Edition - Solutions by Chapter

total revenue divided by the quantity sold

an institution designed to oversee the banking system and regulate the quantity of money in the economy

the process by which unions and firms agree on the terms of employment

the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending

the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

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

the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics

a situation in which the market price has reached the level at which quantity supplied equals quantity demanded

money without intrinsic value that is used as money because of government decree

input costs that do not require an outlay of money by the firm

transfers to the poor given in the form of goods and services rather than cash

the regular pattern of income variation over a person’s life

the change in total revenue from an additional unit sold

a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price

a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers

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

a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries

a cost that has already been committed and cannot be recovered

tax on goods produced abroad and sold domestically

the amount a firm receives for the sale of its output