×
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 52: Defining Profit

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

ISBN: 9781464122187

Solutions for Chapter Module 52: Defining Profit

This textbook survival guide was created for the textbook: Krugman's Economics for AP® (High School), edition: 2. Chapter Module 52: Defining Profit includes 5 full step-by-step solutions. Krugman's Economics for AP® (High School) was written by and is associated to the ISBN: 9781464122187. This expansive textbook survival guide covers the following chapters and their solutions. Since 5 problems in chapter Module 52: Defining Profit have been answered, more than 8213 students have viewed full step-by-step solutions from this chapter.

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

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

  • benefits principle

    the idea that people should pay taxes based on the benefits they receive from government services

  • circular-flow diagram

    a visual model of the economy that shows how dollars flow through markets among households and firms

  • consumer surplus

    the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it

  • cost

    the value of everything a seller must give up to produce a good

  • efficiency

    the property of society getting the most it can from its scarce resources

  • exports

    goods produced domestically and sold abroad

  • GDP deflator

    a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100

  • implicit costs

    input costs that do not require an outlay of money by the firm

  • leverage ratio

    the ratio of assets to bank capital

  • libertarianism

    the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income

  • monopoly

    a firm that is the sole seller of a product without close substitutes

  • multiplier effect

    the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending

  • negative income tax

    a tax system that collects revenue from high-income households and gives subsidies to lowincome households

  • normative statements

    claims that attempt to prescribe how the world should be

  • physical capital

    the stock of equipment and structures that are used to produce goods and services

  • price elasticity of supply

    a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price

  • principal

    a person for whom another person, called the agent, is performing some act

  • production function

    the relationship between quantity of inputs used to make a good and the quantity of output of that good

  • substitutes

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

×
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