PURCHASING POWER: In general the quantities of goods and services that can be bought with a given amount of money. The notable feature of purchasing power is that it declines as prices rise. In particular, inflation is the number one nemesis of purchasing power. When inflation gives higher prices, purchasing power falls. Be careful, though, that you don't get too caught up in the purchasing power of just a single dollar. The real question is not how much stuff one dollar can buy, but how many dollars you have. In other words, while the price of a brand new car might have been $10 when you were a kid (in the good old days), the average annual income was also $20. That's the same purchasing power as a $10,000 car price and a $20,000 income.

     See also | real | nominal | money | price level | inflation | cost of living | living standard | store of value |

PURCHASING POWER, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: February 15, 2025].

Back to the GLOSS*arama

An input whose quantity can be changed in the time period under consideration. The most common example of a variable input is labor. Variable inputs provide the means used by a firm to control short-run production. The alternative to variable input is fixed input. A fixed input, like capital, provides the capacity constraint in production. As larger quantities of a variable input, like labor, are added to a fixed input like capital, the variable input becomes less productive, which is the law of diminishing marginal returns.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time watching infomercials wanting to buy either a flower arrangement for that special day for your mother or a New York Yankees baseball cap. Be on the lookout for slightly overweight pizza delivery guys.
Your Complete Scope

This isn't me! What am I?

-- Richard Bach, Author

User Feedback