×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide

Solutions for Chapter Module 22: Saving, Investment, and the Financial System

Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition

ISBN: 9781464122187

Solutions for Chapter Module 22: Saving, Investment, and the Financial System

Krugman's Economics for AP® (High School) was written by and is associated to the ISBN: 9781464122187. Since 5 problems in chapter Module 22: Saving, Investment, and the Financial System have been answered, more than 8295 students have viewed full step-by-step solutions from this chapter. Chapter Module 22: Saving, Investment, and the Financial System includes 5 full step-by-step solutions. This expansive textbook survival guide covers the following chapters and their solutions. This textbook survival guide was created for the textbook: Krugman's Economics for AP® (High School), edition: 2.

Key Business Terms and definitions covered in this textbook
  • ability-to-pay principle

    the idea that taxes should be levied on a person according to how well that person can shoulder the burden

  • balanced trade

    a situation in which exports equal imports

  • collusion

    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

  • exports

    goods produced domestically and sold abroad

  • human capital

    the accumulation of investments in people, such as education and on-the-job training

  • incentive

    something that induces a person to act

  • indifference curve

    a curve that shows consumption bundles that give the consumer the same level of satisfaction

  • market failure

    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

  • microeconomics

    the study of how households and firms make decisions and how they interact in markets

  • moral hazard

    the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior

  • natural monopoly

    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

  • poverty rate

    the percentage of the population whose family income falls below an absolute level called the poverty line

  • quantity supplied

    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

  • substitutes

    two goods for which an increase in the price of one leads to an increase in the demand for the other

  • world price

    the price of a good that prevails in the world market for that good

×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide
×
Reset your password