- 1-2.1: Define economy. What does an economist do?
- 1-2.2: What is the definition of demand? Of supply?
- 1-2.3: Explain why economics is often called the study of scarcity.
- 1-2.4: How may a growing economy affect your job and income?
- 1-2.5: What is a job scout?
- 1-2.6: What are hard skills? What are soft skills? Give an example of each...
- 1-2.7: List several ways that students can pay for their formal education ...
- 1-2.8: What does residency mean when referring to completing a college deg...
Solutions for Chapter 1-2: Career Planning
Full solutions for Personal Financial Literacy | 1st Edition
Arrow’s impossibility theorem
a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences
diseconomies of scal
the property whereby long-run average total cost rises as the quantity of output increases
the study of how society manages its scarce resources economies of scale the property whereby long-run average total cost falls as the quantity of output increases
the one-for-one adjustment of the nominal interest rate to the inflation rate
the idea that taxpayers with similar abilities to pay taxes should pay the same amount
the regular pattern of income variation over a person’s life
the ease with which an asset can be converted into the economy’s medium of exchange
a group of buyers and sellers of a particular good or service
market for loanable funds
the market in which those who want to save supply funds and those who want to borrow to invest demand funds
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)
a market structure in which only a few sellers offer similar or identical products
an economy that interacts freely with other economies around the world
a person’s normal income
claims that attempt to describe the world as it is
the business practice of selling the same good at different prices to different customers
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 market value of the inputs a firm uses in production