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ABSTRACTION: Simplifying the complexities of the real world by ignoring (hopefully) unimportant details while doing economic analysis. Abstraction is often criticized because it's, well, it's JUST NOT REALISTIC. However, when done correctly (ignoring things that JUST DON'T MATTER), then the pursuit of knowledge is greatly enhanced by abstraction. For example, when travelling cross country along a high-speed interstate highway, a paper road map is a handy tool. It shows towns and cities along the way, the major intersections, rest stop locations, and other important points of interest. However, it ignores unimportant details. It doesn't realistically show the location of every tree, bush, or blade of grass. Why bother? This information won't enhance your road trip.
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STABLE EQUILIBRIUM: An equilibrium that is restored if disrupted by an external force. This should be contrasted with unstable equilibrium. Most equilibria studied in economics are of the stable variety. The most common example is market equilibrium. Should the existing market equilibrium be disrupted by a change in one of the demand or supply determinants, the resulting shortage or surplus causes the price to change, which causes changes in quantity demanded and quantity supplied needed to restore equilibrium. The new equilibrium may by, and probably is, at a different equilibrium price and quantity, but it is equilibrium, and it will remain there until disrupted by an external force. See also | equilibrium | unstable equilibrium | disequilibrium | market equilibrium | demand determinants | supply determinants | shortage | surplus | equilibrium price | equilibrium quantity |
Recommended Citation:STABLE EQUILIBRIUM, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2019. [Accessed: January 21, 2019].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: stable equilibrium
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PLASTIC MONEY A slang phrase for credit cards, especially when such cards used to make purchases. The "plastic" portion of this term refers to the plastic construction of credit cards, as opposed to paper and metal of currency. The "money" portion is an erroneous reference to credit cards as a form of money, which they are not. Although credit cards do facilitate transactions, because they are a liability rather than an asset, they are not money and not part of the economy's money supply.
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WHITE GULLIBON
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Today, you are likely to spend a great deal of time strolling around a discount warehouse buying club trying to buy either pink cotton balls or a genuine down-filled comforter. Be on the lookout for small children selling products door-to-door.
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Parker Brothers, the folks who produce the Monopoly board game, prints more Monopoly money each year than real currency printed by the U.S. government.
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"The more you praise and celebrate your life, the more there is in life to celebrate." -- Oprah Winfrey
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BEA
Bureau of Economic Analisys
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