- 1.1: Describe some of the trade-offs faced by each of the following: a. ...
- 1.2: You are trying to decide whether to take a vacation. Most of the co...
- 1.3: You were planning to spend Saturday working at your part-time job, ...
- 1.4: You win $100 in a basketball pool. You have a choice between spendi...
- 1.5: The company that you manage has invested $5 million in developing a...
- 1.6: The Social Security system provides income for people over age 65. ...
- 1.7: A 1996 bill reforming the federal governments anti-poverty programs...
- 1.8: Explain whether each of the following government activities is moti...
- 1.9: Discuss each of the following statements from the standpoints of eq...
- 1.10: In what ways is your standard of living different from that of your...
- 1.11: Suppose Americans decide to save more of their in-comes. If banks l...
- 1.12: During the Revolutionary War, the American colo-nies could not rais...
Solutions for Chapter 1: Ten Principles of Economics
Full solutions for Principles of Microeconomics | 7th Edition
a shortfall of tax revenue from government spending
the equipment and structures used to produce goods and services
the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics
the reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks
gross domestic product (GDP)
the market value of all final goods and services produced within a country in a given period of time
income elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income
the automatic correction by law or contract of a dollar amount for the effects of inflation
a curve that shows consumption bundles that give the consumer the same level of satisfaction
the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income
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
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
the study of how households and firms make decisions and how they interact in markets
the set of assets in an economy that people regularly use to buy goods and services from other peopl
the quantity of money available in the economy
a firm that is the sole seller of a product without close substitutes
people who systematically and purposefully do the best they can to achieve their objectives
an action taken by an informed party to reveal private information to an uninformed party
the market value of the inputs a firm uses in production