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Solutions for Chapter Module 54: The Production Function

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

ISBN: 9781464122187

Solutions for Chapter Module 54: The Production Function

Chapter Module 54: The Production Function includes 5 full step-by-step solutions. Krugman's Economics for AP® (High School) was written by and is associated to the ISBN: 9781464122187. Since 5 problems in chapter Module 54: The Production Function have been answered, more than 11017 students have viewed full step-by-step solutions from this chapter. 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

  • automatic stabilizers

    changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action

  • closed economy

    an economy that does not interact with other economies in the world

  • cross-price elasticity of demand

    a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good

  • cross-price elasticity of demand

    a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good

  • deadweight loss

    the fall in total surplus that results from a market distortion, such as a tax

  • discouraged workers

    individuals who would like to work but have given up looking for a job

  • factors of production

    the inputs used to produce goods and services

  • incentive

    something that induces a person to act

  • income effect

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

  • 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

  • investment

    spending on capital equipment, inventories, and structures, including household purchases of new housing

  • medium of exchange

    an item that buyers give to sellers when they want to purchase goods and services

  • money multiplier

    the amount of money the banking system generates with each dollar of reserves

  • open economy

    an economy that interacts freely with other economies around the world

  • 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

  • proportional tax

    a tax for which highincome and low-income taxpayers pay the same fraction of income

  • total cost

    the market value of the inputs a firm uses in production

  • trade policy

    a government policy that directly influences the quantity of goods and services that a country imports or exports

  • unemployment rate

    the percentage of the labor force that is unemployed

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