|
|
BALANCE OF TRADE DEFICIT: An imbalance in a nation's balance of trade in which the payments for merchandise imports made by the country exceed payments for merchandise exports received by the country. This is also termed an unfavorable balance of trade. It's considered unfavorable because more goods are imported into the country than are exported out, meaning that domestic production is replaced with foriegn production, which then reduces domestic employment and income. A balance of trade deficit is often the source of a balance of payments deficit.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 5: Market Demand | Unit 2: Law of Demand
|
Page: 5 of 20
|
|
The law of demand is the basic principle underlying demand, one of our most important economic laws. A definition: The law of demand is an inverse relationship between demand price and the quantity demanded, ceteris paribus. - Inverse relationship means that people buy more of a good if the price is lower and less if the price is higher.
- In terms of scientific method, price causes quantity demanded. A change in the price causes a change in the quantity demanded.
Ceteris paribus is important to the law of demand.- Ceteris paribus means other things remain unchanged.
- Law of demand applies exclusively to the relationship between demand price and quantity demanded.
- All other things that can affect demand must remain constant to avoid distorting this relationship.
- Because demand is affected by many factors other than price, a buyer may buy larger amounts of a good even with a higher price.
- Other factors that affect demand are called demand determinants.
|
|
|
|
|
|
|
FOUR-SECTOR INJECTIONS-LEAKAGES MODEL A variation of the Keynesian injections-leakages model that adds the foreign sector to the three domestic sectors--the household sector, the business sector, and the government sector. This variation adds the foreign to the three domestic sectors (household, business, and government) in the three-sector model and provides an alternative to the four-sector aggregate expenditures (Keynesian cross). It provides the complete Keynesian representation of the macroeconomy, including the export-import interaction between the domestic economy and the foreign sector. Equilibrium is identified as the intersection between the S + T + M line and the I + G + X line. Two related variations are the two-sector injections-leakages model and the three-sector injections-leakages model.
Complete Entry | Visit the WEB*pedia |
|
|
BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time flipping through the yellow pages seeking to buy either a coffee cup commemorating the first day of spring or a printer that works with your stockpile of ink cartridges. Be on the lookout for the happiest person in the room.
Your Complete Scope
This isn't me! What am I?
|
|
|
During the American Revolution, the price of corn rose 10,000 percent, the price of wheat 14,000 percent, the price of flour 15,000 percent, and the price of beef 33,000 percent.
|
|
|
"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
|
|
ADV
Ad Valorem
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
