- Module 11.1: Assume there are only two goods in the economy, french fries and on...
- Module 11.2: From 1990 to 2000 the price of housing rose dramatically. What are ...
- Module 11.3: Use the information provided in the table below for an economy that...
- Module 11.4: Real GDP per capita is an imperfect measure of the quality of life ...
- Module 11.5: Refer to the 2009 data in the table below. Which of the following m...
Solutions for Chapter Module 11: Interpreting Real Gross Domestic Product
Full solutions for Krugman's Economics for AP* | 2nd Edition
the resources a bank’s owners have put into the institution
a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality
the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics
the field that studies how people make decisions regarding the allocation of resources over time and the handling of risk
a person who receives the benefit of a good but avoids paying for it
internalizing the externality
altering incentives so that people take account of the external effects of their actions
a tax that is the same amount for every person
the study of how households and firms make decisions and how they interact in markets
the quantity of money available in the economy
a market structure in which many firms sell products that are similar but not identical
a legal minimum on the price at which a good can be sold
the relationship between quantity of inputs used to make a good and the quantity of output of that good
production possibilities frontier
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
a tax for which highincome taxpayers pay a smaller fraction of their income than do low-income taxpayers
a situation in which quantity demanded is greater than quantity supplied
government policy aimed at protecting people against the risk of adverse events
costs that vary with the quantity of output produced
the study of how the allocation of resources affects economic well-being
willingness to pay
the maximum amount that a buyer will pay for a good