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INCREASING OPPORTUNITY COST: The proposition that opportunity cost, the value of foregone production, increases as more of a good is produced. This 'law' is most important to the slope of the production possibilities curve. It generates the convex shape of the curve, making the curve flat at the top and steep at the bottom.

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Lesson 9: Macro Basics | Unit 4: Policies Page: 13 of 16

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  • Government stabilization policies that seek to bring the economy closer to the macro goals of full employment, stability and growth.
  • The two basic viewpoints regarding the role of the government: (a) Liberal Democrat: Government is the only way to keep the economy running smoothly and (b) Conservative Republican: Government is the problem, not the solution.


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AUTOMATIC STABILIZERS

Taxes and transfer payments that depend on the level of aggregate production and income such that they automatically dampen business-cycle instability without the need for discretionary policy action. Automatic stabilizers are a form of nondiscretionary fiscal policy that do not require explicit action by the government sector to address the ups and downs of the business cycle and the problems of unemployment and inflation.

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WHITE GULLIBON
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Today, you are likely to spend a great deal of time at the confiscated property police auction hoping to buy either a hepa filter for your furnace or a wall poster commemorating next Thursday. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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Approximately three-fourths of the U.S. paper currency in circular contains traces of cocaine.
"Always remember that striving and struggle precede success, even in the dictionary. "

-- Sarah Ban Breathnach, writer

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