Econ Corrections Flashcards
Why does Keynesian economics advocate deficit spending?
Believes stability rather than a balanced budget. Also the spending multiplier
How does the government spend during deficit spending?
The issue bonds that are bought up by people, companies and nations
What is the law of demand
when the price of a good falls consumers demand more of it
What is a demand schedule?
Price in the left column, quantity in the right
what is the law of supply?
that producers are willing to sell more of a good or a service at a higher price
what is supply schedule?
Price per pound in left column, quantity of supplied in the right
What is the supply curve?
Graphs of a supply schedule?
What is marginal product
the change in total production that comes from hiring one worker
what is marginal revenue
added revenue per unit of output
what is total revenue
income a business receives from selling a product
profit-maximizing output
the greatest level of production that produces the greatest amount of profit
what is an excise tax
a tax on a certain good or product
Elasticity of supply
When a change of supply creates a relatively larger change in demand
