- 2.1: Explain the significance of: economicsystem, traditional economy, c...
- 2.2: Explaining An economic system answerswhat three basic questions?
- 2.3: Summarizing In a chart like the one below,fill in the answers to th...
- 2.4: The BIG Idea Go back to the web diagramyou made at the beginning of...
- 2.5: Contrasting In the circular flow of incomeand output model in this ...
- 2.6: Political Systems Some economic systemswork better with democracies...
- 2.7: Explain the significance of: capitalism,laissez-faire, free-enterpr...
- 2.8: Identifying Study the list of goods andservices below. Then identif...
- 2.9: Summarizing In a capitalist system, whymight business owners resist...
- 2.10: Extending the Content Describe asituation in which a lack of compet...
- 2.11: What economic question is being answered ifan industry replaces som...
- 2.12: How does a traditional economy answer thebasic question, How should...
- 2.13: What are six important characteristics of freeenterprise?
- 2.14: What is governments role in the modernAmerican version of capitalism?
- 2.15: Why is private property important in theAmerican economic system?
- 2.16: What are the six goals of free enterprise?
- 2.17: What are two examples of individualseconomic responsibilities in a ...
- 2.18: Complete the graphic organizer by filling incharacteristics of each...
- 2.19: Who did Karl Marx believe should control themeans of production in ...
- 2.20: "Who did Karl Marx believe should control themeans of production in...
- 2.21: The BIG Idea Karl Marx predicted that capitalismwould collapse and ...
- 2.22: Comparing Create a diagram like the one belowto list the advantages...
- 2.23: Interpreting Explain what U.S. economic goal isbeing met by each of...
- 2.24: Study the cartoon on theright, and then answer thefollowing questio...
Solutions for Chapter 2: Economic Systems and the American Economy
Full solutions for Microeconomics | 21st Edition
total revenue divided by the quantity sold
a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker
the failure of majority rule to produce transitive preferences for society
constant returns to scale
the property whereby long-run average total cost stays the same as the quantity of output changes
a study that compares the costs and benefits to society of providing a public good
the fall in total surplus that results from a market distortion, such as a tax
the quantity supplied and the quantity demanded at the equilibrium price
factors of production
the inputs used to produce goods and services
costs that do not vary with the quantity of output produced
the percentage change in the price index from the preceding period
the process by which workers find appropriate jobs given their tastes and skills
the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income
the increase in output that arises from an additional unit of input
median voter theorem
a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
medium of exchange
an item that buyers give to sellers when they want to purchase 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
the quantity of goods and services produced from each unit of labor input
regulations on the minimum amount of reserves that banks must hold against deposits
two goods for which an increase in the price of one leads to an increase in the demand for the other
a government policy that directly influences the quantity of goods and services that a country imports or exports