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February 27, 2024 

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ACCELERATOR: The ratio between investment expenditures and the change in gross domestic product. This is based on the notion that business investment depends on the rate of growth of aggregate output. If the economy is expanding, in other words, then the business sector invests in more capital goods to produce the extra output needed. This accelerator effect modifies and magnifies the simply multiplier effect based on the induced consumption and the marginal propensity to consume.

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ATTRACTIVE FORCE: A force that causes activities to locate closer together. One primary attractive force is transportation cost and the weight of an activity. In this case, activities locate close together to reduce transportation cost. Another is agglomeration and urban economies. In this case, activities locate close together to lower other production cost. Attractive forces are countered by dispersive forces, which act to force activities farther apart.

     See also | weight | transportation | weight gaining | weight losing | agglomeration economies | urbanization economies | competition along a line | location theory | dispersive force |


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VALUE IN EXCHANGE

The ability to trade an item or asset, especially money, for other goods and services that can then be used to satisfy wants and needs. Value in exchange means that value (that is, satisfaction) is obtained indirectly through the acquisition of something else. For an item to have value in exchange it need NOT have value in use, value obtained directly from the consumption of a good or service.

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Today, you are likely to spend a great deal of time watching the shopping channel hoping to buy either a turbo-powered vacuum cleaner or a battery-powered, rechargeable vacuum cleaner. Be on the lookout for strangers with large satchels of used undergarments.
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