When the avg. Price of u.s. output increases, consumers naturally begin to look for similar items produced elsewhere.

A system in which only a fraction of the total money deposited in banks is held in reserve as currency.

In the case of a public good, some members of the community know that they can consume the public good while others provide for it.

Medium of exchange, store of value and unit of account.

The price index that measures the average price level of the goods and services that make up GDP.

The market value of the final goods and services produced within a nation in a given year.

The amount of knowledge and skills that labor can apply to the work they do and the general level of health that the labor force enjoys.

A limitation on the amount of a good that can be imported into the domestic market.

The change in qd that results from a change in the consumer’s purchasing power (or real income)

A good for which high income decreases D.