- 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
total revenue divided by the quantity sold
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
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
the deviation of unemployment from its natural rate
the uncompensated impact of one person’s actions on the well-being of a bystander
something that induces a person to act
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 ratio of assets to bank capital
a small incremental adjustment to a plan of action
the increase in total cost that arises from an extra unit of production
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
the claim that the government should aim to maximize the well-being of the worst-off person in society
the quantity of money available in the economy
a legal maximum on the price at which a good can be sold
rivalry in consumption
the property of a good whereby one person’s use diminishes other people’s use
the resources wasted when inflation encourages people to reduce their money holdings
a situation in which quantity supplied is greater than quantity demanded
Tragedy of the Commons
a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole
value of the marginal product
the marginal product of an input times the price of the output