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This book is your ultimate tool for success in the AP® Economics course and exam. an excess of tax revenue over government spending, a difference in wages that arises to offset the nonmonetary characteristics of different jobs, the failure of majority rule to produce transitive preferences for society, a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good, input costs that require an outlay of money by the firm, the revenue the government raises by creating money, the regular pattern of income variation over a person’s life, a group of buyers and sellers of a particular good or service, the proposition that changes in the money supply do not affect real variables, a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen, the percentage of the population whose family income falls below an absolute level called the poverty line, a legal maximum on the price at which a good can be sold, an item that people can use to transfer purchasing power from the present to the future, the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution, an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply curve and thus the Phillips curve, the market value of the inputs a firm uses in production, a government program that partially protects workers’ incomes when they become unemployed, the yardstick people use to post prices and record debts, government programs that supplement the incomes of the needy welfare economics the study of how the allocation of resources affects economic well-being, Key Business Terms and definitions covered in this textbook, Chapter module 1 7 : Aggregate Demand: Introduction and Determinants, Chapter module 1 8 : Aggregate Supply: Introduction and Determinants, Chapter Module 10 : The Circular Flow and Gross Domestic Product, Chapter Module 11: Interpreting Real Gross Domestic Product, Chapter Module 12 : The Meaning and Calculation of Unemployment, Chapter Module 13 : The Causes and Categories of Unemployment, Chapter Module 14 : Inflation: An Overview, Chapter Module 15 : The Measurement and Calculation of Inflation, Chapter Module 16: Income and Expenditure, Chapter Module 18 : Aggregate Supply: Introduction and Determinants, Chapter Module 19 : Equilibrium in the Aggregate DemandAggregate Supply Model, Chapter module 2 : Introduction to Macroeconomics, Chapter Module 20 : Economic Policy and the Aggregate DemandAggregate Supply Model, Chapter Module 21 : Fiscal Policy and the Multiplier, Chapter Module 22 : Saving, Investment, and the Financial System, Chapter Module 23 : The Definition and Measurement of Money, Chapter Module 24 : The Time Value of Money, Chapter Module 25: Banking and Money Creation, Chapter Module 26 : The Federal Reserve System: History and Structure, Chapter Module 27 : The Federal Reserve: Monetary Policy, Chapter Module 29 : The Market for Loanable Funds, Chapter Module 3: The Production Possibilities Curve Model, Chapter Module 30: Long-run Implications of Fiscal Policy: Deficits and the Public Debt, Chapter Module 31 : Monetary Policy and the Interest Rate, Chapter Module 32 : Money, Output, and Prices in the Long Run, Chapter Module 33: Types of Inflation, Disinflation, and Deflation, Chapter Module 34 : Inflation and Unemployment: The Phillips Curve, Chapter Module 35 : History and Alternative Views of Macroeconomics, Chapter Module 36 : The Modern Macroeconomic Consensus, Chapter Module 37 : Long-run Economic Growth, Chapter Module 38 : Productivity and Growth, Chapter Module 39 : Growth Policy: Why Economic Growth Rates Differ, Chapter Module 4: Comparative Advantage and Trade, Chapter module 4 9 : Consumer and Producer Surplus, Chapter Module 40 : Economic Growth in Macroeconomic Models, Chapter Module 41: Capital Flows and the Balance of Payments, Chapter Module 42 : The Foreign Exchange Market, Chapter Module 44 : Exchange Rates and Macroeconomic Policy, Chapter Module 45 : Putting It All Together, Chapter Module 46: Income Effects, Substitution Effects, and Elasticity, Chapter Module 47 : Interpreting Price Elasticity of Demand, Chapter Module 5: Supply and Demand: Introduction and Demand, Chapter Module 50 : Efficiency and Deadweight Loss, Chapter Module 54 : The Production Function, Chapter Module 56 : Long-Run Costs and Economies of Scale, Chapter Module 57 : Introduction to Market Structure, Chapter Module 58 : Introduction to Perfect Competition, Chapter Module 59 : Graphing Perfect Competition, Chapter Module 6: Supply and Demand: Supply and Equilibrium, Chapter Module 60 : Long-Run Outcomes in Perfect Competition, Chapter Module 61 : Introduction to Monopoly, Chapter Module 62 : Monopoly and Public Policy, Chapter Module 64 : Introduction to Oligopoly, Chapter Module 66 : Oligopoly in Practice, Chapter Module 67 : Introduction to Monopolistic Competition, Chapter Module 68: Product Differentiation and Advertising, Chapter Module 69 : Introduction and Factor Demand, Chapter Module 7: Supply and Demand: Changes in Equilibrium, Chapter Module 70 : The Markets for Land and Capital, Chapter Module 72 : The Cost-Minimizing Input Combination, Chapter Module 73 : Theories of Income Distribution, Chapter Module 74 : Introduction to Externalities, Chapter Module 75 : Externalities and Public Policy, Chapter Module 77 : Public Policy to Promote Competition, Chapter Module 78 : Income Inequality and Income Distribution, Chapter Module 79 : The Economics of Information, Chapter Module 8: Supply and Demand: Price Controls (Ceilings and Floors), Chapter Module 80 : Indifference Curves and Consumer Choice, Chapter Module 9 : Supply and Demand: Quantity Controls, Chapter section 1 4 : Market Failure and the Role of Government, Chapter section 10 : Behind the Supply Curve: Profit, Production, and Costs, Chapter section 11 : Market Structures: Perfect Competition and Monopoly, Chapter section 14 : Market Failure and the Role of Government, Chapter section 3 : Measurement of Economic Performance, Chapter section 4 : National Income and Price Determination, Chapter section 6: Inflation, Unemployment, and Stabilization Policies, Chapter section 7 : Economic Growth and Productivity, Chapter section 8 : The Open Economy: International Trade and Finance, Chapter section 9 : Behind the Demand Curve: Consumer Choice, Chapter section I : Basic Economic Concepts. 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