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David K.H. Begg, Gianluigi Vernasca-Economics-McGraw Hill Higher Education (2011)

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Index<br />

Laffer curve<br />

supply-side economics 347-8<br />

taxation 347-8<br />

land 254<br />

economic growth 595, 598-9<br />

Malthusian trap 598-9<br />

population 598-9<br />

rents 267-9<br />

law of comparative advantage,<br />

international trade 637-8, 640<br />

law of diminishing returns 10<br />

LDCs see less-developed countries<br />

leakage, circular flow 367-8<br />

lender of last resort, central banks<br />

444-6<br />

less-developed countries (LDCs),<br />

international trade 635-7<br />

life-cycle hypothesis, consumption<br />

demand 455-7<br />

linear demand, marginal revenue<br />

136-7<br />

liquidity 423<br />

liquidity crises 427, 429<br />

LM schedule 467-8<br />

see also IS-LM model<br />

local government<br />

economic principles 348-9<br />

government spending 348-9<br />

Tiebout model 348-9<br />

log-rolling, political economy 351-3<br />

long run<br />

devaluation 580-1<br />

price elasticity of demand (PED)<br />

77-8<br />

production 156-7<br />

long-run average costs 157-9<br />

short-run average costs 166<br />

long-run equilibrium<br />

Balassa-Samuelson effect 564-5<br />

competitive industry 178-80<br />

real exchange rate 564-7<br />

long-run industry supply curves<br />

177-8<br />

long-run marginal cost 157-9<br />

long-run output decision 165-6<br />

long-run production function,<br />

returns to scale 161-2<br />

long-run supply, capital services<br />

263-5<br />

long-run supply curve, perfect<br />

competition 173-5<br />

long-run total cost 157-9<br />

lottery, National Lottery 277-8<br />

lump-of-labour fallacy,<br />

unemployment 533-4<br />

luxury goods, income elasticity of<br />

demand 79-82<br />

M<br />

Maastricht criteria 672-3<br />

Maastricht Treaty, inflation 519-20<br />

macroeconomic policy, EMU<br />

members 678-9<br />

macroeconomics<br />

circular flow 362-3<br />

classical model 481, 488<br />

emerging markets 363-4<br />

facts 360-2<br />

GNP 373-7<br />

international comparisons<br />

377-8<br />

Keynesian model 480-1, 489<br />

cf microeconomics 17-19,<br />

359-60<br />

national income accounting<br />

365-73<br />

overview 362-4<br />

Malthusian trap 598-9<br />

managed float, floating exchange<br />

rates 663-4<br />

manufactured exports from<br />

emerging market economies,<br />

international trade 63 7<br />

marginal cost 132-3<br />

water industry 133<br />

marginal costs curve 138-40<br />

marginal principle 155<br />

marginal product, production 146<br />

marginal product oflabour (MPL)<br />

226-8<br />

marginal propensity to consume<br />

(MPC) 384-5<br />

multiplier 405<br />

marginal propensity to import<br />

(MPZ) 414<br />

marginal propensity to save (MPS)<br />

393<br />

marginal rate of substitution,<br />

consumers 93-4<br />

marginal revenue 132, 134-7<br />

linear demand 136-7<br />

marginal revenue curve 138-40<br />

marginal revenue product of labour<br />

(MRPL) 236-7<br />

marginal social benefit, government<br />

spending 339-40<br />

marginal tax rate 335-7<br />

unemployment 538-9<br />

marginal utility 119-21<br />

water-diamond paradox 121<br />

marginal value product of capital<br />

(MVPK) 262-3<br />

marginal value product of labour<br />

(MVPL) 226-8<br />

market demand curve 113<br />

competitive industry 179-80<br />

market economy, government<br />

spending 338-42<br />

market failure 315-16<br />

asymmetric information 316<br />

equity 315-16<br />

externalities 316<br />

imperfect competition 315<br />

public goods 315-16<br />

taxation 315-16<br />

market prices, national income<br />

accounting 369<br />

market structures<br />

differing 198-201<br />

music industry 201<br />

N-firm concentration ratio<br />

200-1<br />

scale economies 200-1<br />

markets 42-3<br />

see also financial markets<br />

central planning 14<br />

contestable markets 216<br />

demand 43-5<br />

emerging markets 363-4<br />

equilibrium price 45<br />

free markets 15, 55-9, 310-12<br />

'invisible hand' 15<br />

mixed economy 15<br />

role 13-15<br />

supply 43-5<br />

marriage/ divorce, economic<br />

incentives 38<br />

material standard of living,<br />

measuring economic<br />

development 3 72<br />

measurable utility 119-21<br />

measuring economic development<br />

372<br />

709

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