- Module 5.1: Explain whether each of the following events represents (i) a chang...
- Module 5.2: A decrease in the price of butter would most likely decrease the de...
- Module 5.3: If an increase in income leads to a decrease in demand, the good is...
- Module 5.4: Which of the following will occur if consumers expect the price of ...
- Module 5.5: Which of the following will increase the demand for disposable diap...
Solutions for Chapter Module 5: Supply and Demand: Introduction and Demand
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
total revenue minus total explicit cost
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
the process by which unions and firms agree on the terms of employment
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
the paper bills and coins in the hands of the public
a graph of the relationship between the price of a good and the quantity demanded
the price that balances quantity supplied and quantity demanded
input costs that do not require an outlay of money by the firm
law of demand
the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises
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 amount of money the banking system generates with each dollar of reserves
the total income in the economy that remains after paying for consumption and government purchases
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)
claims that attempt to prescribe how the world should be
a curve that shows the short-run trade-off between inflation and unemployment
a legal maximum on the price at which a good can be sold
a legal minimum on the price at which a good can be sold
a worker association that bargains with employers over wages, benefits, and working conditions
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society