- Module 78 .1: Recall that the poverty threshold is not adjusted to reflect change...
- Module 78 .2: In 2009, approximately what percentage of the U.S. population lived...
- Module 78 .3: Average household income in the United States in 2008 was approxima...
- Module 78 .4: Programs designed to help only those with low incomes are called a....
- Module 78 .5: If a country has a perfectly equal distribution of income, its Gini...
Solutions for Chapter Module 78 : Income Inequality and Income Distribution
Full solutions for Krugman's Economics for AP* | 2nd Edition
changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action
average variable cost
variable cost divided by the quantity of output
a government regulation specifying a minimum amount of bank capital
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
an agreement among firms in a market about quantities to produce or prices to charge
money that takes the form of a commodity with intrinsic value
the accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the future
diseconomies of scal
the property whereby long-run average total cost rises as the quantity of output increases
the quantity supplied and the quantity demanded at the equilibrium price
transfers to the poor given in the form of goods and services rather than cash
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 political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
marginal tax rate
the amount that taxes increase from an additional dollar of income
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
natural level of output
the production of goods and services that an economy achieves in the long run when unemployment is at its normal rate
nominal exchange rate
the rate at which a person can trade the currency of one country for the currency of another
an economy that interacts freely with other economies around the world
the percentage of the population whose family income falls below an absolute level called the poverty line
the business practice of selling the same good at different prices to different customers
price elasticity of supply
a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price
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