Costs of production that do not vary with the number of units produced. A way that people exchange goods and services by means of directly reciprocated transfers (unlike gifts), voluntarily entered into for mutual benefit (unlike theft, taxation), that is often impersonal (unlike transfers among friends, family). A record of the assets, liabilities, and net worth of an economic actor such as a household, bank, firm, or government. Setting things on fire is called. Expenditure by the government to purchase goods and services. The estimated total amount of a substance in the earth's crust. Upward mobility occurs when the status of a child surpasses that of the parents.
Current account surplus. See also: procedural judgements of fairness. The extent of a person's advantage in securing a larger share of the economic rents made possible by an interaction. Labour productivity. The change in the unemployment rate in percentage points predicted to be associated with a 1% change in GDP. A decrease in the general price level. Price elasticity of demand. Substantive of setting something on fire. Also known as: state. The point at which output equals the aggregate demand for goods produced in the home economy. See also: liquidity. See also: aggregate demand. Dependent and Neglected Children. A payment or other benefit received above and beyond what the individual would have received in his or her next best alternative (or reservation option).
Buying and selling assets in order to profit from an anticipated change in their price. If voters can be lined up along a single more-versus-less dimension (such as preferring higher or lower taxes, more or less environmental protection), the median voter is the one 'in the middle'—that is (if there is an odd number of voters in total), with an equal number preferring more and preferring less than what he or she does. Sometimes more generally used to mean anything produced for sale. Originally known as the 'natural rate' of unemployment. Goverments and central banks responded aggressively with stabilization policies. A market in which there is some kind of exchange that, if implemented, would be mutually beneficial. Distributionally neutral. Glossary – The Economy. An outcome of a game in which every player plays his or her dominant strategy. A tax levied on activities that generate negative external effects so as to correct an inefficient market outcome. See also: decreasing returns to scale, constant returns to scale. See also: correlation, causality. Assets less liabilities. See also: progressive (policy). See also: non-rival good.
The value added is equal to profits before taxes plus wages. Usually part of the government. Recent flashcard sets. See also: comparative advantage. They include costs of acquiring information about the good to be traded, and costs of enforcing a contract. When used as a component of aggregate demand, this does not include spending on transfers such as pensions and unemployment benefits. What is setting yourself on fire called. Factors of production. The increase in unemployment above equilibrium unemployment caused by a fall in aggregate demand associated with the business cycle. Usually measured over a year. This began in 2007 with the collapse of house prices in the US, leading to the fall in prices of assets based on subprime mortgages and to widespread uncertainty about the solvency of banks in the US and Europe, which had borrowed to purchase such assets.
The price of one good or service compared to another (usually expressed as a ratio). Word for setting oneself on fire. Top government officials such as the president, cabinet officials, and legislative leaders, unified by a common interest such as membership in a particular party. A game in which the payoffs in the dominant strategy equilibrium are lower for each player, and also lower in total, than if neither player played the dominant strategy. A second use of the term is to refer to the effect of an increase in government spending in reducing private spending, as would be expected for example in an economy working at full capacity utilization, or when a fiscal expansion is associated with a rise in the interest rate.
These are designed to protect local industries from external competition. The expression was first used by Alan Greenspan, then chairman of the US Federal Reserve Board, in 1996. It replaced the gold standard that was abandoned during the Great Depression. Also known as: diminishing marginal returns in production. It is the slope of the person's indifference curve for consumption now and consumption later, minus one. Most robbery statutes are state laws, but some robberies, notably those that affect interstate commerce or the currency, are matters of federal law. Also known as: high-powered money. A process by which the economies of the world become increasingly integrated by the freer flow across national boundaries of goods, investment, finance, and to a lesser extent, labour. See also: Great Depression. The extent to which the curve falls below this perfect equality line is a measure of inequality.
A market outcome in which all buyers and sellers are price-takers, and at the prevailing market price, the quantity supplied is equal to the quantity demanded. Golden age (of capitalism). Marginal rate of transformation (MRT). The effect that the additional income would have if there were no change in the price or opportunity cost. Nominal interest rate. See also: endowment. For example, the initial sale of shares by a company to an investor (known as an initial public offering or IPO) is on the primary market. The side of a market on which those participating are offering something in return for money (for example, those selling bread). Short side (of a market). Also known as: non-accelerating rate of unemployment, stable inflation rate of unemployment. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. An external effect of one person's action on another, occuring because the two are connected in a network. This occurs when some attribute of the person engaging in an exchange (or the product or service being provided) is not known to the other parties.
The maximum legal price a landlord can charge for a rent. It arises when a person is impatient to consume more now because she places less value on consumption in the future for reasons of myopia, weakness of will, or for other reasons.
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