Solutions for Chapter Module 78 : Income Inequality and Income Distribution

Full solutions for Krugman's Economics for AP* | 2nd Edition

ISBN: 9781429218276

Solutions for Chapter Module 78 : Income Inequality and Income Distribution

Since 5 problems in chapter Module 78 : Income Inequality and Income Distribution have been answered, more than 2257 students have viewed full step-by-step solutions from this chapter. This expansive textbook survival guide covers the following chapters and their solutions. Chapter Module 78 : Income Inequality and Income Distribution includes 5 full step-by-step solutions. This textbook survival guide was created for the textbook: Krugman's Economics for AP*, edition: 2. Krugman's Economics for AP* was written by and is associated to the ISBN: 9781429218276.

Key Business Terms and definitions covered in this textbook
  • automatic stabilizers

    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

  • capital requirement

    a government regulation specifying a minimum amount of bank capital

  • Coase theorem

    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

  • collusion

    an agreement among firms in a market about quantities to produce or prices to charge

  • commodity money

    money that takes the form of a commodity with intrinsic value

  • compounding

    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

  • equilibrium quantity

    the quantity supplied and the quantity demanded at the equilibrium price

  • in-kind transfers

    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

  • liberalism

    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

  • market power

    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

  • open economy

    an economy that interacts freely with other economies around the world

  • poverty rate

    the percentage of the population whose family income falls below an absolute level called the poverty line

  • price discrimination

    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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