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Solutions for Chapter 26: The Neoclassical Perspective

Principles of Economics | 2nd Edition | ISBN: 9781947172364 | Authors: Steven A. Greenlaw, David Shapiro, Timothy Taylor

Full solutions for Principles of Economics | 2nd Edition

ISBN: 9781947172364

Principles of Economics | 2nd Edition | ISBN: 9781947172364 | Authors: Steven A. Greenlaw, David Shapiro, Timothy Taylor

Solutions for Chapter 26: The Neoclassical Perspective

Solutions for Chapter 26
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Textbook: Principles of Economics
Edition: 2
Author: Steven A. Greenlaw, David Shapiro, Timothy Taylor
ISBN: 9781947172364

This expansive textbook survival guide covers the following chapters and their solutions. Principles of Economics was written by and is associated to the ISBN: 9781947172364. Since 21 problems in chapter 26: The Neoclassical Perspective have been answered, more than 14993 students have viewed full step-by-step solutions from this chapter. This textbook survival guide was created for the textbook: Principles of Economics, edition: 2. Chapter 26: The Neoclassical Perspective includes 21 full step-by-step solutions.

Key Business Terms and definitions covered in this textbook
  • accounting profit

    total revenue minus total explicit cost

  • 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

  • closed economy

    an economy that does not interact with other economies in the world

  • Coase theorem

    the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own

  • complements

    two goods for which an increase in the price of one leads to a decrease in the demand for the other

  • elasticity

    the quantity of output that minimizes average total cost

  • equality

    the property of distributing economic prosperity uniformly among the members of society

  • equilibrium

    a situation in which the market price has reached the level at which quantity supplied equals quantity demanded

  • federal funds rate

    the interest rate at which banks make overnight loans to one another

  • indexation

    the automatic correction by law or contract of a dollar amount for the effects of inflation

  • negative income tax

    a tax system that collects revenue from high-income households and gives subsidies to lowincome households

  • net capital outflow

    the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners

  • normative statements

    claims that attempt to prescribe how the world should be

  • producer surplus

    the amount a seller is paid for a good minus the seller’s cost of providing it

  • property rights

    the ability of an individual to own and exercise control over scarce resources

  • quantity demanded

    the amount of a good that buyers are willing and able to purchase

  • reserve ratio

    the fraction of deposits that banks hold as reserves

  • sunk cost

    a cost that has already been committed and cannot be recovered

  • supply shock

    an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply curve and thus the Phillips curve

  • union

    a worker association that bargains with employers over wages, benefits, and working conditions

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