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UNFAVORABLE BALANCE OF PAYMENTS: An imbalance in a nation's balance of payments in which payments made by the country exceed payments received by the country. This is also termed a balance of payments deficit. It's considered unfavorable because more currency is flowing out of the country than is flowing in. Such an unequal flow of currency will reduce the supply of money in the nation and subsequently cause an increase in the exchange rate relative to the currencies of other nations. This then has implications for inflation, unemployment, production, and other facets of the domestic economy. A balance of trade deficit is often the source of a balance of payments deficit, but other payments can turn a balance of trade deficit into a balance of payments surplus.
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Lesson 7: Market | Unit 5: The Method
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Page: 21 of 22
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Inefficient use of resources can result from:- The fourth rule of competition-with less competition buyers or sellers control the price. The quantity is too little and the demand price is greater than the supply price.
- The seventh rule of complexity-costs or benefits external to the market (externalities) cause differences between the value of goods produced and goods not produced, even though market demand and supply prices are equal.
- The fifth rule of imperfection-markets are not perfect.
- Scarcity implies the lack of competition.
- Complexity implies externalities.
Efficiency is a goal, not a perpetual state of the world.
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AUTONOMOUS EXPENDITURES Expenditures on aggregate production by the four macroeconomic sectors that do not depend on income or production (especially national income or even gross domestic product). That is, changes in income do not generate changes in these expenditures. Each of the four aggregate expenditures--consumption, investment expenditures, government purchases, and net exports--have an autonomous component. Autonomous expenditures are affected by the ceteris paribus aggregate expenditures determinants and are measured by the intercept term of the aggregate expenditures line. The alternative to autonomous expenditures are induced expenditures, expenditures which do depend on income.
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RED AGGRESSERINE
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Today, you are likely to spend a great deal of time browsing about a thrift store hoping to buy either a handcrafted bird house or a weathervane with a chicken on top. Be on the lookout for malfunctioning pocket calculators.
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The portrait on the quarter is a more accurate likeness of George Washington than that on the dollar bill.
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