- Module 22.1: Rank the following assets from the lowest level to the highest leve...
- Module 22.2: What relationship would you expect to find between the level of dev...
- Module 22.3: The federal government is said to be dissaving when a. there is a b...
- Module 22.4: A nonprofit institution collects the savings of its members and inv...
- Module 22.5: A financial intermediary that provides liquid financial assets in t...
Solutions for Chapter Module 22: Saving, Investment, and the Financial System
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
a situation in which exports equal imports
an agreement among firms in a market about quantities to produce or prices to charge
diminishing marginal product
the property whereby the marginal product of an input declines as the quantity of the input increases
diseconomies of scal
the property whereby long-run average total cost rises as the quantity of output increases
goods produced domestically and sold abroad
the accumulation of investments in people, such as education and on-the-job training
something that induces a person to act
a curve that shows consumption bundles that give the consumer the same level of satisfaction
a situation in which a market left on its own fails to allocate resources efficiently
median voter theorem
a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
the study of how households and firms make decisions and how they interact in markets
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
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
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
the percentage of the population whose family income falls below an absolute level called the poverty line
the amount of a good that sellers are willing and able to sell
real exchange rate
the rate at which a person can trade the goods and services of one country for the goods and services of another
two goods for which an increase in the price of one leads to an increase in the demand for the other
the price of a good that prevails in the world market for that good