Contemporary Economics 2nd Edition - Solutions by Chapter

the idea that taxes should be levied on a person according to how well that person can shoulder the burden

the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party

total taxes paid divided by total income

the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it

a decrease in investment that results from government borrowing

the paper bills and coins in the hands of the public

the study of how society manages its scarce resources economies of scale the property whereby long-run average total cost falls as the quantity of output increases

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

the ease with which an asset can be converted into the economy’s medium of exchange

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

the normal rate of unemployment around which the unemployment rate fluctuates

an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty

the quantity of goods and services produced from each unit of labor input

the quantity of goods and services produced from each unit of labor input

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

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

two goods for which an increase in the price of one leads to an increase in the demand for the other

the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution

tax on goods produced abroad and sold domestically

the idea that taxpayers with a greater ability to pay taxes should pay larger amounts