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SLOPE, NET EXPORTS LINE: The negative slope of the net exports line is based on the marginal propensity to import (MPM). Because net exports are exports minus imports, the induced change in imports causes an opposite change in net exports. As such, the slope of the net exports line is negative, less than zero (but greater than negative one). The slope of the net exports line affects the slope of the aggregate expenditures line and thus also affects the magnitude of the multiplier process.
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Lesson 16: Perfect Competition | Unit 3: Doing Graphs
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Page: 14 of 28
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- The logic behind using marginals to identify profit maximization.
- Marginal revenue indicates how much total revenue changes by producing one more or one less unit of output.
- Marginal cost indicates how much total cost changes by producing one more or one less unit of output.
- Profit increases if marginal revenue is greater than marginal cost and profit decreases if marginal revenue is less than marginal cost.
- Profit neither increases nor decreases if marginal revenue is equal to marginal cost.
- As such, the production level that equates marginal revenue and marginal cost is profit maximization.
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SECOND ESTATE Another term for the business sector. This is one of four divisions of society based on economic function. The other three are government as the first estate, consumers as the third estate, and journalists as the fourth estate.
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BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time flipping through the yellow pages looking to buy either a flower arrangement for your aunt or a birthday greeting card for your uncle. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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This isn't me! What am I?
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Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
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"The time to repair the roof is when the sun is shining." -- John F. Kennedy, 35th U. S. president
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NEDO
National Economic Development Office
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