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# Solutions for Chapter 1: Basic Statistics for Business and Economics 7th Edition

## Full solutions for Basic Statistics for Business and Economics | 7th Edition

ISBN: 9780077384470

Solutions for Chapter 1

Solutions for Chapter 1
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##### ISBN: 9780077384470

This textbook survival guide was created for the textbook: Basic Statistics for Business and Economics , edition: 7. Basic Statistics for Business and Economics was written by and is associated to the ISBN: 9780077384470. Chapter 1 includes 22 full step-by-step solutions. Since 22 problems in chapter 1 have been answered, more than 122505 students have viewed full step-by-step solutions from this chapter. This expansive textbook survival guide covers the following chapters and their solutions.

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

• ability-to-pay principle

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

the ability to produce a good at a lower opportunity cost than another producer

• 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

• crowding-out effect

the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending

• economics

the study of how society manages its scarce resources

• efficiency

the property of society getting the most it can from its scarce resources

• externality

the uncompensated impact of one person’s actions on the wellbeing of a bystander

• finance

the field that studies how people make decisions regarding the allocation of resources over time and the handling of risk

• fractional-reserve banking

a banking system in which banks hold only a fraction of deposits as reserves

• gross domestic product (GDP)

the market value of all final goods and services produced within a country in a given period of time

• income effect

the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve

• inflation

an increase in the overall level of prices in the economy

• labor-force participation rate

the percentage of the adult population that is in the labor force

• normative statements

claims that attempt to prescribe how the world should be

• principal

a person for whom another person, called the agent, is performing some act

• principal

a person for whom another person, called the agent, is performing some act

• signaling

an action taken by an informed party to reveal private information to an uninformed party

• sunk cost

a cost that has already been committed and cannot be recovered

• surplus

a situation in which quantity supplied is greater than quantity demanded

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