Solutions for Chapter Module 78 : Income Inequality and Income Distribution

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

ISBN: 9781464122187

Solutions for Chapter Module 78 : Income Inequality and Income Distribution

Since 5 problems in chapter Module 78 : Income Inequality and Income Distribution have been answered, more than 3190 students have viewed full step-by-step solutions from this chapter. Chapter Module 78 : Income Inequality and Income Distribution 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. 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
  • average variable cost

    variable cost divided by the quantity of output

  • bond

    a certificate of indebtedness

  • capital fligh

    a large and sudden reduction in the demand for assets located in a country

  • catch-up effect

    the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

  • collective bargaining

    the process by which unions and firms agree on the terms of employment

  • consumer surplus

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

  • equilibrium price

    the price that balances quantity supplied and quantity demanded

  • leverage

    the use of borrowed money to supplement existing funds for purposes of investment

  • marginal cost

    the increase in total cost that arises from an extra unit of production

  • marginal rate of substitution

    the rate at which a consumer is willing to trade one good for another

  • marginal tax rate

    the amount that taxes increase from an additional dollar of income

  • nominal GDP

    the production of goods and services valued at current prices

  • normal good

    a good for which, other things being equal, an increase in

  • 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

  • prisoners’ dilemma

    a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

  • proportional tax

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

  • recession

    a period of declining real incomes and rising unemployment

  • stagflation

    a period of falling output and rising prices

  • substitution effect

    the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution

  • trade policy

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

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