Absolute (Money) Price

Resource Allocative Efficiency The
situation when firms produce the quantity of
output at which price equals marginal cost:
P 5 MC.
Revaluation A government act that
changes the exchange rate by raising the
official price of a currency.
Rivalrous in Consumption A good
whose consumption by one person reduces
its consumption by others.
Roundabout Method of Production
The production of capital goods that
enhance productive capabilities.
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Savings Deposit An interest-earning
account at a commercial bank or thrift
institution. Normally, checks cannot be
written on savings deposits, and the funds
in a savings deposit can be withdrawn at any
time without a penalty payment.
Say’s Law Supply creates its own demand.
Production creates enough demand
to purchase all the goods and services
produced.
Scarcity The condition in which our
wants are greater than the limited resources
available to satisfy those wants.
Screening The process employers use to
increase the probability of choosing good
employees based on certain criteria.
Second-Degree Price Discrimination
A price structure in which the seller charges
a uniform price per unit for one specific
quantity, a lower price for an additional
quantity, and so on.
Securitization The process by which
financial institutions aggregate debt (such
as loans) in a pool and then issue securities
backed by the pool.