- Module 69 .1: Suppose that the government places price controls on the market for...
- Module 69 .2: a. Suppose service industries, such as retailing and banking, exper...
- Module 69 .3: Factor market demand is called a derived demand because it a. deriv...
- Module 69 .4: Which factor of production receives the largest portion of income i...
- Module 69 .5: The individual firms demand curve for labor is a. the VMPL curve. b...
Solutions for Chapter Module 69 : Introduction and Factor Demand
Full solutions for Krugman's Economics for AP* | 2nd Edition
a curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level
fluctuations in economic activity, such as employment and production
a large and sudden reduction in the demand for assets located in a country
goods that are rival in consumption but not excludable
a difference in wages that arises to offset the nonmonetary characteristics of different jobs
diminishing marginal product
the property whereby the marginal product of an input declines as the quantity of the input increases
diseconomies of scal
the property whereby long-run average total cost rises as the quantity of output increases
the property of a good whereby a person can be prevented from using it
a good for which, other things being equal, an increase in income leads to a decrease in demand
the revenue the government raises by creating money
labor-force participation rate
the percentage of the adult population that is in the labor force
the change in total revenue from an additional unit sold
a situation in which a market left on its own fails to allocate resources efficiently
a good for which, other things being equal, an increase in
an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty
price elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
a legal minimum on the price at which a good can be sold
the theory that people optimally use all the information they have, including information about government policies, when forecasting the future
an action taken by an informed party to reveal private information to an uninformed party
a cost that has already been committed and cannot be recovered