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INELASTIC DEMAND: Relatively large changes in demand price cause relatively smaller changes in quantity demanded. Inelastic demand means that changes in the quantity demanded are not very responsive to changes in the demand price. An inelastic demand has a coefficient of elasticity less than one (the negative value is ignored). You might want to compare inelastic demand to elastic demand, inelastic supply, and elastic supply.
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Lesson 17: Money | Unit 2: More About Money
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Page: 5 of 25
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Topic:
Medium of Exchange
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The primary function of money is to as THE medium of exchange. An economy without money: - Barter exchange happens when you trade one good for another.
- A barter economy is one that uses nothing but barter trades, no money.
- Barter requires double coincidence of wants: I must want what you have and you must want what I have.
- With no money, resources are used for trading and not for production.
The bottom line: - Using money as a medium of exchange eases the exchange process, makes it more efficient, and frees resources for production.
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INDUCED IMPORTS Imports from the foreign sector that depend on domestic income or production (especially national income and gross domestic product). That is, changes in income induce changes in imports. Induced imports are measured by the marginal propensity to import (MPM) and are reflected by a positive slope of imports line. Induced imports are the reason for induced net exports, generating a negatively sloped net exports line. Autonomous net exports are due to a combination of autonomous exports and autonomous imports.
Complete Entry | Visit the WEB*pedia |
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Paper money used by the Commonwealth of Massachusetts prior to the U.S. Revolutionary War, which was issued against the dictates of Britain, was designed by patriot and silversmith, Paul Revere.
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"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
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