- Module 54 .1: Bernies ice-making company produces ice cubes using a 10-ton machin...
- Module 54 .2: Which of the following defines the short run? a. less than a year b...
- Module 54 .3: The slope of the total product curve is also known as a. marginal p...
- Module 54 .4: Diminishing returns to an input ensures that as a firm continues to...
- Module 54 .5: Historically, the limits imposed by diminishing returns have been a...
Solutions for Chapter Module 54 : The Production Function
Full solutions for Krugman's Economics for AP* | 2nd Edition
an excess of government spending over government receipts
constant returns to scale
the property whereby long-run average total cost stays the same as the quantity of output changes
above-equilibrium wages paid by firms to increase worker productivity
the setting of the level of government spending and taxation by government policymakers
a banking system in which banks hold only a fraction of deposits as reserves
goods produced abroad and sold domestically
the automatic correction by law or contract of a dollar amount for the effects of inflation
the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
a group of buyers and sellers of a particular good or service
the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits
the claim that unemployment eventually returns to its normal, or natural, rate, regardless of the rate of inflation
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
total revenue minus total cost
goods that are neither excludable nor rival in consumption
a period of declining real incomes and rising unemployment
the limited nature of society’s resources
a situation in which quantity demanded is greater than quantity supplied
an action taken by an informed party to reveal private information to an uninformed party
tax on goods produced abroad and sold domestically