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HARROD-DOMAR MODEL: A model economic growth developed by R. F. Harrod and E. D. Domar that seeks to explain why an economy would not grow as fast has its potential growth rate. This model is based on the notion that actual income determines the amount saving, which is determines investment, which is what affects the rate of economic growth. If saving is not enough, the potential growth rate will not be achieved. The Harrod-Domar model, developed in the 1930s, has a strong Keynesian economic flavor, both indicating that the economy does not automatically achieve its potential.

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Lesson 13: The Firm | Unit 5: The Bigger Picture Page: 22 of 24

Topic: Market Structures <=PAGE BACK | PAGE NEXT=>

Highlights of four market structures.

  • Perfect Competition
    Perfect competition is a market with a large number or relatively small firms that sell virtually identical products and that have ease of movement into and out of the market.

  • Monopoly
    Monopoly is a market with a single seller of a good with virtually no close substitutes.

  • Monopolistic Competition
    Monopolistic competition is a market with a large number or relatively small firms that sell similar but not identical products and that have ease of movement into and out of the market.

  • Oligopoly
    Oligopoly is a market with a small number or relatively large firms.

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SILVER CERTIFICATES

Paper currency issued and authorized by the U.S. Department of the Treasury that is, in principle, backed up by, and exchangeable for, an equivalent value of silver. Silver certificates were in circulation as a medium of exchange for the U.S. economy during two periods, 1878 to 1923 and 1928 to 1957. A similar form of paper currency is gold certificates.

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Today, you are likely to spend a great deal of time searching for rummage sales wanting to buy either a birthday greeting card for your uncle or a T-shirt commemorating the 2000 Presidential election. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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The 22.6% decline in stock prices on October 19, 1987 was larger than the infamous 12.8% decline on October 29, 1929.
"Far and away the best prize that life has to offer is the chance to work hard at work worth doing."

-- Theodore Roosevelt, 26th US president

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