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HECKSCHER-OHLIN MODEL: A model of international trade developed by Eli Heckscher and Bertil Ohlin, with significant contributions by Paul Samuelson, that relies on the notion that comparative advantage is based on relative natural resource endowments. A nation with large oil reserves will, for example, have a comparative advantage in oil production over another nation with fertile soil, which will have a comparative advantage in agricultural production.
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AUTOMATIC STABILIZERS: A feature of the federal government's budget that tends to reduce the ups and downs of the business cycle without the need for any special legislative action, that is stabilization policies. The two key automatic stabilizers are income taxes and transfer payments. When our economy drops into a recession, unemployment rises, aggregate output declines, and people have less income. But with less income, they pay fewer income taxes, and thus there's less of a drain on consumption than their might have been. Likewise, many who are unemployed get transfer payments in the form of unemployment compensation, welfare, or Social Security. This lets them consume more than they would have otherwise. During an expansion, both of these go in the other direction. As a result, a recession sees more spending and fewer taxes, while an expansion has less spending and more taxes, all occurring quite automatically. See also | business cycle | stabilization policies | fiscal policy | transfer payment | unemployment compensation | welfare | income tax | business cycle | contraction | expansion | consumption | income | aggregate output |
Recommended Citation:AUTOMATIC STABILIZERS, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 13, 2025].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: automatic stabilizers
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CAPITAL The manufactured, artificial, or synthetic goods used in the production of other goods, making capital the "produced" factor of production. This is one of four basic categories of resources, or factors of production. The other three are labor, land, and entrepreneurship. Capital makes labor more productive.
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ORANGE REBELOON
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Today, you are likely to spend a great deal of time at a crowded estate auction hoping to buy either a battery-powered, rechargeable vacuum cleaner or a remote controlled World War I bi-plane. Be on the lookout for infected paper cuts.
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Two and a half gallons of oil are needed to produce one automobile tire.
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"To sit back and let fate play its hand out, and never influence it, is not the way man was meant to operate." -- John Glenn, astronaut, U.S. senator
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NTB
Non-Tariff Barrier
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