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INFLATION RATE: The percentage change in the price level from one period to the next. The two most common price indices used to measure the inflation are the Consumer Price Index (CPI) and the GDP price deflator.

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Lesson 14: Production | Unit 3: Product Curves Page: 13 of 25

Topic: Marginal Product Curve <=PAGE BACK | PAGE NEXT=>

  • The marginal product curve:

  • The marginal product curve graphically illustrates the relation between marginal product and the quantity of the variable input, holding all other inputs fixed.

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FALLACY OF DIVISION

The logical fallacy of arguing that what is true for the whole is also true for the parts. In the study of economics, this takes the form of assuming that what works for the aggregate, or macroeconomy, also works for parts of the economy, such as households or businesses. The contrasting fallacy is the fallacy of composition.

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Today, you are likely to spend a great deal of time searching for a specialty store looking to buy either a toaster oven that has convection cooking or a birthday gift for your mother. Be on the lookout for door-to-door salesmen.
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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
"All things are difficult before they are easy."

-- Thomas Fuller, Physician

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