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Solutions for Chapter 4: The Demand for Goods and Services

Full solutions for Explorations in Economics | 1st Edition

ISBN: 9780716701071

Solutions for Chapter 4: The Demand for Goods and Services

Chapter 4: The Demand for Goods and Services includes 10 full step-by-step solutions. This textbook survival guide was created for the textbook: Explorations in Economics, edition: 1. This expansive textbook survival guide covers the following chapters and their solutions. Since 10 problems in chapter 4: The Demand for Goods and Services have been answered, more than 2133 students have viewed full step-by-step solutions from this chapter. Explorations in Economics was written by and is associated to the ISBN: 9780716701071.

Key Business Terms and definitions covered in this textbook
  • agent

    a person who is performing an act for another person, called the principal

  • business cycle

    fluctuations in economic activity, such as employment and production

  • closed economy

    an economy that does not interact with other economies in the world

  • collusion

    an agreement among firms in a market about quantities to produce or prices to charge

  • comparative advantage

    the ability to produce a good at a lower opportunity cost than another producer

  • compounding

    the accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the future

  • efficiency

    the property of society getting the most it can from its scarce resources

  • externality

    the uncompensated impact of one person’s actions on the wellbeing of a bystander

  • financial intermediaries

    financial institutions through which savers can indirectly provide funds to borrowers

  • game theory

    the study of how people behave in strategic situations

  • inflation

    an increase in the overall level of prices in the economy

  • 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

  • oligopoly

    a market structure in which only a few sellers offer similar or identical products

  • open economy

    an economy that interacts freely with other economies around the world

  • political economy

    the study of government using the analytic methods of economics

  • quantity theory of money

    a theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate

  • scarcity

    the limited nature of society’s resources

  • supply shock

    an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply curve and thus the Phillips curve

  • trade balance

    the value of a nation’s exports minus the value of its imports; also called net exports

  • value of the marginal product

    the marginal product of an input times the price of the output

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