Absolute (Money) Price

Total Cost (TC) The sum of fixed costs and
variable costs.
Total Revenue (TR) Price times quantity
sold.
Total Surplus (TS) The sum of consumers’
surplus and producers’ surplus. TS 5 CS
1 PS
Total Utility The total satisfaction a
person receives from consuming a particular
quantity of a good.
Trade Balance The value of a country’s
exports minus the value of its imports;
sometimes referred to as net exports.
Trade Deficit The condition that exists
when the value of a country’s imports is
greater than the value of its exports.
Trade Surplus The condition that exists
when the value of a country’s exports is
greater than the value of its imports.
Transfer Payment A payment to a person
that is not made in return for goods and
services currently supplied.
Transitivity The principle whereby if A is
preferred to B, and B is preferred to C, then
A is preferred to C.
Transmission Mechanism The routes, or
channels, traveled by the ripple effects that
the money market creates and that affect the
goods and services market (represented by
the aggregate demand and aggregate supply
curves in the AD—AS framework).
Trust A combination of firms that come
together to act as a monopolist.
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