|
|
X: The standard abbreviation for exports produced by the foreign sector and purchased by the domestic economy, especially when used in the study of macroeconomics. This abbreviation is most often seen in the aggregate expenditure equation, AE = C + I + G + (X - M), where C, I, G, and (X - M) represent expenditures by the four macroeconomic sectors, household, business, government, and foreign. The United States, for example, sells a lot of the stuff produced within our boundaries to other countries, including wheat, beef, cars, furniture, and, well, almost every variety of product you care to name.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 17: Money | Unit 2: More About Money
|
Page: 10 of 25
|
- The four functions of money:
- Medium of exchange: money makes it easier to buy, sell, produce, and consume goods and services.
- Measure of value: prices are stated in terms of the monetary unit.
- Store of value: value can be stored over time with money.
- Standard of deferred payment: future payments are also in terms of the monetary unit.
- Using money as a medium of exchange eases the exchange process, makes it more efficient, and frees resources for production.
- Using money as the unit for prices gives a measure for value, that is, how much value we place on a good.
- Price inflation is the nemesis for the store of value function of money.
- Money is used as a standard for buying now and paying later.
- The four characteristics of money:
- Durable: It helps to retain value from one exchange to do the next and store value for future exchanges.
- Divisible: It lets us accurately match an amount of money to the precise value of a good.
- Transportable: It allows us to conduct exchanges far and wide, to go where we need to go for an exchange.
- Non-counterfeitable: It keeps the value of money from being diluted.
|
|
|
|
|
|
|
MARGINAL UTILITY OF INCOME The change in utility resulting from a given change in income. This is a specialized case of the general notion of marginal utility, which is simply the change in utility resulting from a given change in the consumption of a good. Marginal utility of income is key to identifying alternative risk preferences, including risk aversion, risk neutrality, and risk loving. These three risk preferences are indicated by three marginal utility of income possibilities, decreasing (risk aversion), increasing (risk loving), and constant (risk neutrality).
Complete Entry | Visit the WEB*pedia |
|
|
GREEN LOGIGUIN
[What's This?]
Today, you are likely to spend a great deal of time at a garage sale looking to buy either a wall poster commemorating next Thursday or a pair of gray heavy duty boot socks. Be on the lookout for vindictive digital clocks with revenge on their minds.
Your Complete Scope
This isn't me! What am I?
|
|
|
The first paper notes printed in the United States were in denominations of 1 cent, 5 cents, 25 cents, and 50 cents.
|
|
|
"The road to success is always under construction. " -- Lily Tomlin, Actress
|
|
S&P 500
Standard&Poor's Stock Index
|
|
|
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
|
|
