×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide

Solutions for Chapter 7: Consumers, Producers, and the Effi ciency of Markets

Principles of Macroeconomics | 6th Edition | ISBN: 9780538453066 | Authors: N. Gregory Mankiw

Full solutions for Principles of Macroeconomics | 6th Edition

ISBN: 9780538453066

Principles of Macroeconomics | 6th Edition | ISBN: 9780538453066 | Authors: N. Gregory Mankiw

Solutions for Chapter 7: Consumers, Producers, and the Effi ciency of Markets

Since 11 problems in chapter 7: Consumers, Producers, and the Effi ciency of Markets have been answered, more than 4246 students have viewed full step-by-step solutions from this chapter. Principles of Macroeconomics was written by and is associated to the ISBN: 9780538453066. This expansive textbook survival guide covers the following chapters and their solutions. Chapter 7: Consumers, Producers, and the Effi ciency of Markets includes 11 full step-by-step solutions. This textbook survival guide was created for the textbook: Principles of Macroeconomics, edition: 6.

Key Business Terms and definitions covered in this textbook
  • ability-to-pay principle

    the idea that taxes should be levied on a person according to how well that person can shoulder the burden

  • absolute advantage

    the ability to produce a good using fewer inputs than another producer

  • capital

    the equipment and structures used to produce goods and services

  • capital requirement

    a government regulation specifying a minimum amount of bank capital

  • corrective tax

    a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality

  • cost

    the value of everything a seller must give up to produce a good

  • cross-price elasticity of demand

    a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good

  • exports

    goods produced domestically and sold abroad

  • imports

    goods produced abroad and sold domestically

  • indifference curve

    a curve that shows consumption bundles that give the consumer the same level of satisfaction

  • inflation rate

    the percentage change in the price index from the preceding period

  • market economy

    an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services

  • moral hazard

    the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior

  • negative income tax

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

  • opportunity cost

    whatever must be given up to obtain some item

  • Phillips curve

    a curve that shows the short-run trade-off between inflation and unemployment

  • profit

    total revenue minus total cost

  • shortage

    a situation in which quantity demanded is greater than quantity supplied

  • supply curve

    a graph of the relationship between the price of a good and the quantity supplied

  • surplus

    a situation in which quantity supplied is greater than quantity demanded

×
Log in to StudySoup
Get Full Access to Business - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Business - Textbook Survival Guide
×
Reset your password