- section 1 4 .1: What type of externality (positive or negative) is present in each ...
- section 1 4 .2: The loud music coming from the sorority next to your dorm is a nega...
- section 1 4 .3: Many dairy farmers in California are adopting a new technology that...
- section 1 4 .4: The accompanying table shows the total revenue and the total cost t...
- section 1 4 .5: Voluntary environmental programs were extremely popular in the Unit...
- section 1 4 .6: Smoking produces a negative externality because it imposes a health...
- section 1 4 .7: Education is an example of an activity that generates a positive ex...
- section 1 4 .8: Planting a tree improves the environment: trees transform greenhous...
- section 1 4 .9: The government is involved in providing many goods and services. Fo...
- section 1 4 .10: An economist gives the following advice to a museum director: You s...
- section 1 4 .11: In many planned communities, various aspects of community living ar...
- section 1 4 .12: A residential community has 100 residents who are concerned about s...
- section 1 4 .13: The accompanying table shows Tanishas and Aris individual marginal ...
- section 1 4 .14: Anyone with a radio receiver can listen to public radio, which is f...
- section 1 4 .15: Your economics teacher assigns a group project for the course. Desc...
- section 1 4 .16: The accompanying table shows six consumers willingness to pay (his ...
- section 1 4 .17: Software has historically been an artificially scarce goodit is non...
- section 1 4 .18: In developing a vaccine for the H1N1 virus, a pharmaceutical compan...
- section 1 4 .19: According to a report from the U.S. Census Bureau, the average [lif...
- section 1 4 .20: Fishing for sablefish has been so intensive that sablefish were thr...
- section 1 4 .21: The two dry-cleaning companies in Collegetown, College Cleaners and...
- section 1 4 .22: Ronald owns a cattle farm at the source of a long river. His cattle...
- section 1 4 .23: a. EAuction and EMarketplace are two competing Internet auction sit...
Solutions for Chapter section 1 4 : Market Failure and the Role of Government
Full solutions for Krugman's Economics for AP* | 2nd Edition
an excess of government receipts over government spending
goods that are excludable but not rival in consumption
the deviation of unemployment from its natural rate
balances in bank accounts that depositors can access on demand by writing a check
the property of society getting the most it can from its scarce resources
the one-for-one adjustment of the nominal interest rate to the inflation rate
the accumulation of investments in people, such as education and on-the-job training
a small incremental adjustment to a plan of action
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending
an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds
net capital outflow
the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners
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
the ability of an individual to own and exercise control over scarce resources
goods that are neither excludable nor rival in consumption
a tax for which highincome taxpayers pay a smaller fraction of their income than do low-income taxpayers
a cost that has already been committed and cannot be recovered
a graph of the relationship between the price of a good and the quantity supplied
a worker association that bargains with employers over wages, benefits, and working conditions
costs that vary with the quantity of output produced