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Solutions for Chapter 18: Trade and the Global Economy

Full solutions for Explorations in Economics | 1st Edition

ISBN: 9780716701071

Solutions for Chapter 18: Trade and the Global Economy

Since 10 problems in chapter 18: Trade and the Global Economy have been answered, more than 2620 students have viewed full step-by-step solutions from this chapter. Explorations in Economics was written by and is associated to the ISBN: 9780716701071. This expansive textbook survival guide covers the following chapters and their solutions. Chapter 18: Trade and the Global Economy includes 10 full step-by-step solutions. This textbook survival guide was created for the textbook: Explorations in Economics, edition: 1.

Key Business Terms and definitions covered in this textbook
  • ability-to-pay principle

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

  • absolute advantage

    the ability to produce a good using fewer inputs than another producer

  • cartel

    a group of firms acting in unison

  • cyclical unemployment

    the deviation of unemployment from its natural rate

  • diminishing marginal product

    the property whereby the marginal product of an input declines as the quantity of the input increases

  • efficient scale

    the quantity of output that minimizes average total cost

  • future value

    the amount of money in the future that an amount of money today will yield, given prevailing interest rates

  • government purchases

    spending on goods and services by local, state, and federal governments

  • in-kind transfers

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

  • inflation rate

    the percentage change in the price index from the preceding period

  • informational efficiency

    the description of asset prices that rationally reflect all available information

  • labor-force participation rate

    the percentage of the adult population that is in the labor force

  • marginal change

    a small incremental adjustment to a plan of action

  • median voter theorem

    a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter

  • oligopoly

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

  • profit

    total revenue minus total cost

  • quantity supplied

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

  • supply schedule

    a table that shows the relationship between the price of a good and the quantity supplied

  • tariff

    tax on goods produced abroad and sold domestically

  • unemployment insurance

    a government program that partially protects workers’ incomes when they become unemployed