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Solutions for Chapter 5: The Supply of Goods and Services

Full solutions for Explorations in Economics | 1st Edition

ISBN: 9780716701071

Solutions for Chapter 5: The Supply of Goods and Services

This expansive textbook survival guide covers the following chapters and their solutions. This textbook survival guide was created for the textbook: Explorations in Economics, edition: 1. Explorations in Economics was written by and is associated to the ISBN: 9780716701071. Chapter 5: The Supply of Goods and Services includes 10 full step-by-step solutions. Since 10 problems in chapter 5: The Supply of Goods and Services have been answered, more than 2710 students have viewed full step-by-step solutions from this chapter.

Key Business Terms and definitions covered in this textbook
  • budget deficit

    an excess of government spending over government receipts

  • catch-up effect

    the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

  • circular-flow diagram

    a visual model of the economy that shows how dollars flow through markets among households and firms

  • Coase theorem

    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

  • common resources

    goods that are rival in consumption but not excludable

  • exports

    goods produced domestically and sold abroad

  • human capital

    the accumulation of investments in people, such as education and on-the-job training

  • in-kind transfers

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

  • inflation tax

    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

  • marginal revenue

    the change in total revenue from an additional unit sold

  • marginal tax rate

    the amount that taxes increase from an additional dollar of income

  • market economy

    an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services

  • market failure

    a situation in which a market left on its own fails to allocate resources efficiently

  • poverty line

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

  • quantity supplied

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

  • stagflation

    a period of falling output and rising prices

  • structural unemployment

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

  • supply curve

    a graph of the relationship between the price of a good and the quantity supplied

  • trade policy

    a government policy that directly influences the quantity of goods and services that a country imports or exports