
PERFECT COMPETITION, SHUTDOWN: A perfectly competitive firm is presumed to shutdown production and produce no output in the short run, if price is less than average variable cost. This is one of three shortrun production alternatives facing a firm. The other two are profit maximization (if price exceeds average total cost) and loss minimization (if price is greater than average variable cost but less than average total cost).
Visit the GLOSS*arama




AXES: Two number lines that are joined at a right angle such that they intersect at their zero points (called the origin). The vertical axis is by convention termed the Yaxes and the horizontal axis is termed the Xaxis. These axes are used to locate or plot pairs of numbers in coordinate space, one value for the Xvariable coordinate and a corresponding value for the Yvariable coordinate. More often than not, coordinate number pairs are used to plot relationships that can be connected by one or more lines. This line construction procedure is one of the more powerful tools used by economists. Economists typically analyze relationships between two variables, such as price and quantity demanded. By letting one axis measure price and the other measure quantity demanded, these axes form the framework, the guidelines if you will, for constructing a demand curve (the relationship between price and quantity demanded). Once we have an abstract relationship graphed out, then it can be used to perform all sorts of economic analysis. See also  origin  vertical axis  horizontal axis  curve  slope  quantity demanded  demand curve  economic analysis  Recommended Citation:AXES, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 20002019. [Accessed: January 20, 2019].
Search Again?
Back to the GLOSS*arama


SIMPLE EXPENDITURES MULTIPLIER A measure of the change in aggregate production caused by changes in an autonomous expenditure that shocks the macroeconomy, when consumption is the ONLY induced expenditure. The simple expenditures multiplier is the inverse of one minus the marginal propensity to consume, or more simply the inverse of the marginal propensity to save. A related multiplier is the simple tax multiplier, which measures the change in aggregate production caused by changes in taxes.
Complete Entry  Visit the WEB*pedia 


PINK FADFLY [What's This?]
Today, you are likely to spend a great deal of time browsing about a thrift store seeking to buy either a desktop calendar with all federal and state holidays highlighted or a halfdozen helium filled balloons. Be on the lookout for pencil sharpeners with an attitude. Your Complete Scope
This isn't me! What am I?


A thousand years before metal coins were developed, clay tablet "checks" were used as money by the Babylonians.


"Act well at the moment, and you have performed a good action for all eternity."  Johann Kaspar Lavater


AIBD Association of International Bond Dealers (now called International Securities Market Association)


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

