|
|
VALUE IN USE: The satisfaction of wants and needs provided by the direct consumption of goods and services. Acquiring value from the use of goods and services is really the ultimate goal of economic activity. It is the final step in the production, allocation, and consumption activities that undertaken to address the fundamental problem of scarcity. Value in use should be contrasted with the similar phrase, value in exchange.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 14: Aggregate Supply | Unit 2: Two Options
|
Page: 5 of 20
|
In the long run all prices are flexible, which ensures that all markets are in equilibrium.- Prices rise to eliminate market shortages and fall to eliminate market surpluses, resulting in equilibrium.
- Equilibrium in the labor market is particularly important:
- In the long run, the labor market is characterized by both flexible prices and full employment.
- The economy is operating on the boundary of the production possibilities curve.
- The time it takes prices to adjust to correct market disequilibrium and get to the long run is critical to the study of macroeconomics and government policies.
|
|
|
|
|
|
|
MARGINAL UTILITY-PRICE RATIO The ratio of the marginal utility obtained from consuming a good to the price of the good. This ratio is particularly important in determining consumer equilibrium, which is reached when the marginal utility-price ratios are the same for all goods. Equality between all marginal utility-price ratios is the rule of consumer equilibrium which is satisfied with utility maximization.
Complete Entry | Visit the WEB*pedia |
|
|
|
Post WWI induced hyperinflation in German in the early 1900s raised prices by 726 million times from 1918 to 1923.
|
|
|
"If anything terrifies me, I must try to conquer it. " -- Francis Charles Chichester, yachtsman, aviator
|
|
BVAR
Bayesian VAR (Vector Autoregression)
|
|
|
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
|
|
