- Module 16.1: Explain why a decline in investment spending caused by a change in ...
- Module 16.2: What is the spending multiplier if the marginal propensity to consu...
- Module 16.3: Suppose a crisis in the capital markets makes consumers unable to b...
- Module 16.4: For each event, explain whether the initial effect is a change in p...
- Module 16.5: Actual investment spending in any period is equal to a. planned inv...
Solutions for Chapter Module 16: Income and Expenditure
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the idea that people should pay taxes based on the benefits they receive from government services
goods that are excludable but not rival in consumption
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
a table that shows the relationship between the price of a good and the quantity demanded
total revenue minus total cost, including both explicit and implicit costs
the property of distributing economic prosperity uniformly among the members of society
factors of production
the inputs used to produce goods and services
Federal Reserve (Fed)
the central bank of the United States
the study of how people behave in strategic situations
the knowledge and skills that workers acquire through education, training, and experience
isk that affects all companies in the stock market
two goods with straight-line indifference curves
a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
goods that are neither excludable nor rival in consumption
real interest rate
the interest rate corrected for the effects of inflation
the organized withdrawal of labor from a firm by a union
the manner in which the burden of a tax is shared among participants in a market
the market value of the inputs a firm uses in production
government programs that supplement the incomes of the needy welfare economics the study of how the allocation of resources affects economic well-being