- Module 38 .1: Explain the effect of each of the following on the growth rate of p...
- Module 38 .2: The economy of Erehwon has grown 3% per year over the past 30 years...
- Module 38 .3: Multinomics, Inc., is a large company with many offices around the ...
- Module 38 .4: Which of the following is cited as an important factor preventing l...
- Module 38 .5: The convergence hypothesis a. states that differences in real GDP p...
Solutions for Chapter Module 38 : Productivity and Growth
Full solutions for Krugman's Economics for AP* | 2nd Edition
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
the resources a bank’s owners have put into the institution
the limit on the consumption bundles that a consumer can afford
the equipment and structures used to produce goods and services
two goods for which an increase in the price of one leads to a decrease in the demand for the other
a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality
a severe recession
transfers to the poor given in the form of goods and services rather than cash
a good for which, other things being equal, an increase in income leads to a decrease in demand
spending on capital equipment, inventories, and structures, including household purchases of new housing
market for loanable funds
the market in which those who want to save supply funds and those who want to borrow to invest demand funds
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
the amount of money the banking system generates with each dollar of reserves
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
a person’s normal income
a tax for which highincome taxpayers pay a smaller fraction of their income than do low-income taxpayers
an action taken by an uninformed party to induce an informed party to reveal information
two goods for which an increase in the price of one leads to an increase in the demand for the other
a cost that has already been committed and cannot be recovered
a measure of happiness or satisfaction