- Module 41.1: Which of the balance of payments accounts do the following events a...
- Module 41.2: The balance of payments on the current account plus the balance of ...
- Module 41.3: The financial account was previously known as the a. gross national...
- Module 41.4: The trade balance includes which of the following? I. imports and e...
- Module 41.5: Which of the following will increase the demand for loanable funds ...
Solutions for Chapter Module 41: Capital Flows and the Balance of Payments
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the ability to produce a good using fewer inputs than another producer
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
the failure of majority rule to produce transitive preferences for society
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
diseconomies of scale
the property whereby long-run average total cost rises as the quantity of output increases
the property of society getting the most it can from its scarce resources
the property of a good whereby a person can be prevented from using it
Federal Reserve (Fed)
the central bank of the United States
a person who receives the benefit of a good but avoids paying for it
income elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income
a situation in which a market left on its own fails to allocate resources efficiently
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
the study of government using the analytic methods of economics
the business practice of selling the same good at different prices to different customers
a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
the income that households have left after paying for taxes and consumption
goods that are neither excludable nor rival in consumption
real interest rate
the interest rate corrected for the effects of inflation
the number of percentage points of annual output lost in the process of reducing inflation by 1 percentage point
the value of a nation’s exports minus the value of its imports; also called net exports