- Module 70 .1: Explain how each of the following events would affect the equilibri...
- Module 70 .2: Explain the following statement: When firms in different industries...
- Module 70 .3: The explicit cost of land you dont own is equal to the a. rental ra...
- Module 70 .4: A firm will continue to employ more land until its value of the mar...
- Module 70 .5: According to the marginal productivity theory of income distributio...
Solutions for Chapter Module 70 : The Markets for Land and Capital
Full solutions for Krugman's Economics for AP* | 2nd Edition
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
the idea that people should pay taxes based on the benefits they receive from government services
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
the quantity of output that minimizes average total cost
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
input costs that require an outlay of money by the firm
financial institutions through which savers can indirectly provide funds to borrowers
the group of institutions in the economy that help to match one person’s saving with another person’s investment
a good for which an increase in the price raises the quantity demanded
the revenue the government raises by creating money
the total number of workers, including both the employed and the unemployed
the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
net capital outflow
the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners
whatever must be given up to obtain some item
goods that are both excludable and rival in consumption
an action taken by an informed party to reveal private information to an uninformed party
government policy aimed at protecting people against the risk of adverse events
the costs that parties incur in the process of agreeing to and following through on a bargain
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society
costs that vary with the quantity of output produced