- Module 78 .1: Recall that the poverty threshold is not adjusted to reflect change...
- Module 78 .2: In 2012, the poorest 20% of households received approximately what ...
- Module 78 .3: If one person received all of the income in an economy, the Lorenz ...
- Module 78 .4: Programs designed to help only those with low incomes are called a....
- Module 78 .5: If a country has a perfectly equal distribution of income, its Gini...
Solutions for Chapter Module 78 : Income Inequality and Income Distribution
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
average variable cost
variable cost divided by the quantity of output
a certificate of indebtedness
a large and sudden reduction in the demand for assets located in a country
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
the process by which unions and firms agree on the terms of employment
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
the price that balances quantity supplied and quantity demanded
the use of borrowed money to supplement existing funds for purposes of investment
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
the production of goods and services valued at current prices
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
a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
a tax for which highincome and low-income taxpayers pay the same fraction of income
a period of declining real incomes and rising unemployment
a period of falling output and rising prices
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
a government policy that directly influences the quantity of goods and services that a country imports or exports