- Module D .1: The accompanying table shows Samanthas preferences for consumption ...
- Module D .2: On the left diagram in panel (a) of Figure D.4, draw a point B anyw...
- Module D .3: Lucinda and Kyle each consume 3 comic books and 6 video games. Luci...
- Module D .4: If the quantity of good X is measured on the horizontal axis and th...
- Module D .5: If the quantity of good X is again measured on the horizontal axis ...
Solutions for Chapter Module D : Indifference Curves and Consumer Choice
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
a curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level
an institution designed to oversee the banking system and regulate the quantity of money in the economy
a visual model of the economy that shows how dollars flow through markets among households and firms
the process by which unions and firms agree on the terms of employment
the ability to produce a good at a lower opportunity cost than another producer
a severe recession
above-equilibrium wages paid by firms to increase worker productivity
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
the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
the amount of money the banking system generates with each dollar of reserves
the quantity of goods and services produced from each unit of labor input
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 graph of the relationship between the price of a good and the quantity supplied
the manner in which the burden of a tax is shared among participants in a market
Tragedy of the Commons
a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole
a government program that partially protects workers’ incomes when they become unemployed
the idea that taxpayers with a greater ability to pay taxes should pay larger amounts