- Module 12 .1: Suppose that employment websites enable job -seekers to find suitab...
- Module 12 .2: In which of the following cases would the worker be counted as unem...
- Module 12 .3: Which of the following are consistent with the observed relationshi...
- Module 12 .4: Use the information for a hypothetical economy presented in the fol...
- Module 12 .5: The unemployment problem in an economy may be understated by the un...
Solutions for Chapter Module 12 : The Meaning and Calculation of Unemployment
Full solutions for Krugman's Economics for AP* | 2nd Edition
average fixed cost
fixed cost divided by the quantity of output
the theoretical separation of nominal and real variables
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
a good for which, other things being equal, an increase in income leads to a decrease in demand
internalizing the externality
altering incentives so that people take account of the external effects of their actions
law of supply and demand
the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
the regular pattern of income variation over a person’s life
marginal product of labor
the increase in the amount of output from an additional unit of labor
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
the claim that unemployment eventually returns to its normal, or natural, rate, regardless of the rate of inflation
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
two goods with right-angle indifference curves
the income that households have left after paying for taxes and consumption
the quantity of goods and services produced from each unit of labor input
the production of goods and services valued at constant prices
real interest rate
the interest rate corrected for the effects of inflation
a period of declining real incomes and rising unemployment
deposits that banks have received but have not loaned out
the organized withdrawal of labor from a firm by a union
the percentage of the labor force that is unemployed