- 5.1: As the price falls from $4.50 to $4.00, a. the quantity supplied de...
- 5.2: When a perfectly competitive fi rm shuts down inthe short run, ther...
- 5.3: Which of the following correctly defi nes profi t? a. marginal reve...
- 5.4: Answer the following four questions based on the productionfunction...
- 5.5: Answer the following four questions based on the productionfunction...
- 5.6: Answer the following four questions based on the productionfunction...
- 5.7: Answer the following four questions based on the productionfunction...
- 5.8: Firms seeking to maximize profi ts in perfectlycompetitive markets ...
- 5.9: Which of the following will not increase the supplyof a good? a. an...
- 5.10: There are diminishing returns to an input because a. as you add mor...
Solutions for Chapter 5: The Supply of Goods and Services
Full solutions for Explorations in Economics | 1st Edition
an excess of government spending over government receipts
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
a visual model of the economy that shows how dollars flow through markets among households and firms
the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
goods that are rival in consumption but not excludable
goods produced domestically and sold abroad
the accumulation of investments in people, such as education and on-the-job training
transfers to the poor given in the form of goods and services rather than cash
the revenue the government raises by creating money
law of demand
the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises
the change in total revenue from an additional unit sold
marginal tax rate
the amount that taxes increase from an additional dollar of income
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
a situation in which a market left on its own fails to allocate resources efficiently
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 amount of a good that sellers are willing and able to sell
a period of falling output and rising prices
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
a graph of the relationship between the price of a good and the quantity supplied
a government policy that directly influences the quantity of goods and services that a country imports or exports