March 17, 2018 

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GOVERNMENT PURCHASES LINE: A graphical depiction of the relation between government purchases and national income (or gross domestic product) that plays a role in Keynesian economics and the Keynesian cross. The slope of this line is positive, greater than zero, less than one, and goes by the name marginal propensity for government purchases. The vertical intercept of this line is autonomous government purchases. The aggregate expenditures line used in the Keynesian cross is obtained by adding this government purchases line, as well as, investment expenditures and net exports, to the consumption line. The government purchases line is also combined with investment expenditures for the Keynesian saving-investment model.

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Lesson 7: Market | Unit 1: The Exchange Page: 4 of 22

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Competition depends on the number of buyers and sellers.
  • More buyers creates more competition to acquire a good. Sellers don't have to sell a good below the going price with a lot of buyers willing and able to pay the market price.
Competition prevents buyers from forcing the price down to it's lowest level.
  • More sellers creates more competition to offer a good for sale. Buyers don't have to buy a good above the going price with a lot of sellers willing and able to sell at the market price.
Competition prevents sellers from forcing the price up to it's highest level.

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One of two (or more) goods that are simultaneously produced using a given resource. A complement-in-production is one of two alternatives falling within the other prices determinant of supply. The other is a substitute-in-production. An increase in the price of one complement good causes an increase in supply for the other.

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Today, you are likely to spend a great deal of time flipping through the yellow pages wanting to buy either a velvet painting of Elvis Presley or a wall poster commemorating yesterday. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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Natural gas has no odor. The smell is added artificially so that leaks can be detected.
"If football taught me anything about business, it is that you win the game one play at a time."

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