Section 2
Demanded quantity of these goods falls as income rises.
What is inferior goods?
A decline in the price of this kind of good causes a reduction in the quantity demanded of another.
What are substitutes?
The economy's total output divided by the total number of workers employed.
What is average labor productivity?
The type of unemployment where it can be attributed to the mismatch between job openings and job-seekers.
What is structural unemployment?
Irregularities in the orderly functioning of markets.
What are externalities?
A type of imperfectly competitive market with one single supplier in charge.
What is a monopoly?
When a lower price for this kind of good causes demand for another good to increase.
What are complements?
Long-lasting goods that are themselves produce and used to produce other goods/services but are not used up in production.
What are capital goods?
What economists use to measure the total output of the economy. It is the market value of all final goods and services produced within a country during a specified period of time.
What is Gross Domestic Product (GDP)?
Often, these kinds of countries that are burdened by poverty face the greatest climate challenges.
What are developing countries?
Economic goods or services that are impossible to establish private property rights in.
What are public goods?
A market with only a few sellers.
What is an oligopoly?
When a person did not work during the past week and did not actively seek work during the past four weeks.
What is out of the labor force?
The period between a peak and a trough in economic activity.
What is a recession?
The effect of reflecting sunlight back into space because of dark-colored surfaces.
What is the albedo effect?
The quotient of percentage change in quantity supplied over percentage change in price.
What is price elasticity of supply?
The equation to calculate total revenue.
What is Total Revenue = Profits x Quantity
The type of unemployment where people are currently not working because of the normal process of matching employees and employers.
What is frictional unemployment?
The 3 kinds of unemployment.
What is frictional, structural, and cyclical unemployment?
Even if worst-case scenarios fail to materialize, taking actions to lower greenhouse gases now can still improve environmental outcomes by reducing negative externalities and public bads.
What are no regrets?
The increase in costs that occurs when producing an additional unit of of output.
What are marginal costs?
________ ______ tend to gravitate toward the equilibrium quantity and price.
What are competitive markets?
A measure of the ease with which an asset can be converted into the economy's medium of exchange.
What is liquidity?
This controls the supply of money in the economy and acts as a lender of last resort for the banking system.
What is the Federal Reserve?
The estimate of the cost (in dollars) of the damage done by each additional ton of carbon emissions and the corresponding benefit of actions taken to reduce them.
What is social cost of carbon?