Google
Friday 
July 11, 2025 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
SECOND ESTATE: In past centuries, this included kings, queens, dukes and others of the ruling elite. In modern times, this includes business leaders who have extensive ownership of and control over resources, especially capital, entrepreneurship, and land.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson 12: Business Cycles | Unit 1: Instability Page: 4 of 26

Topic: Contractionary Bad Times <=PAGE BACK | PAGE NEXT=>

Contractionary bad times give us the most problems.
  • First: Real GDP declines during a contraction. This means less production for the four sectors to buy.
  • Second: Unemployment increases. Resources, especially labor, produce less and receive less income. 3-5 million workers newly employed.
  • Third: The incomes of employed resources also tend to fall, or at least not rise as much as an expansion.
  • Fourth: Business profits decline and bankruptcies increase.
  • Fifth: Social problems, including crime, poverty, and alcoholism, worsen.
But contractions have some good:
  • Inflation remains low or declines.
  • Some resources are more efficiently allocated.

Course Home | Lesson Menu | Page Back | Page Next

LAW OF COMPARATIVE ADVANTAGE

A principle that states that every nation, worker, or production entity has a production activity that incurs a lower opportunity cost than that of another nation, worker, or production entity, which means that trade between the two can be beneficial to both if each specializes in the production of a good with lower relative opportunity cost. This law is most often studied in the confines of international trade, but it also applies to labor and other types of production.

Complete Entry | Visit the WEB*pedia


APLS

GRAY SKITTERY
[What's This?]

Today, you are likely to spend a great deal of time at a crowded estate auction trying to buy either a handcrafted bird house or a weathervane with a chicken on top. Be on the lookout for crowded shopping malls.
Your Complete Scope

This isn't me! What am I?

A communal society, a prime component of Karl Marx's communist philosophy, was advocated by the Greek philosophy Plato.
"If anything terrifies me, I must try to conquer it. "

-- Francis Charles Chichester, yachtsman, aviator

AIC
Akaike's Information Criterion
A PEDestrian's Guide
Xtra Credit
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



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2025 AmosWEB*LLC
Send comments or questions to: WebMaster