Solutions for Chapter Module 48: Other Important Elasticities

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

ISBN: 9781464122187

Solutions for Chapter Module 48: Other Important Elasticities

Chapter Module 48: Other Important Elasticities includes 5 full step-by-step solutions. This textbook survival guide was created for the textbook: Krugman's Economics for AP® (High School), edition: 2. Krugman's Economics for AP® (High School) was written by and is associated to the ISBN: 9781464122187. Since 5 problems in chapter Module 48: Other Important Elasticities have been answered, more than 3323 students have viewed full step-by-step solutions from this chapter. This expansive textbook survival guide covers the following chapters and their solutions.

Key Business Terms and definitions covered in this textbook
  • absolute advantage

    the ability to produce a good using fewer inputs than another producer

  • behavioral economics

    the subfield of economics that integrates the insights of psychology

  • budget deficit

    an excess of government spending over government receipts

  • competitive market

    a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker

  • consumer price index (CPI)

    a measure of the overall cost of the goods and services bought by a typical consumer

  • corrective tax

    a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality

  • crowding-out effect

    the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending

  • diminishing returns

    the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

  • economics

    the study of how society manages its scarce resources

  • financial markets

    financial institutions through which savers can directly provide funds to borrowers

  • horizontal equity

    the idea that taxpayers with similar abilities to pay taxes should pay the same amount

  • income effect

    the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve

  • 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

  • perfect substitutes

    two goods with straight-line indifference curves

  • price discrimination

    the business practice of selling the same good at different prices to different customers

  • random walk

    the path of a variable whose changes are impossible to predict

  • shortage

    a situation in which quantity demanded is greater than quantity supplied

  • social insurance

    government policy aimed at protecting people against the risk of adverse events

  • theory of liquidity preference

    Keynes’s theory that the interest rate adjusts to bring money supply and money demand into balance

  • world price

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

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