Principles of Political Economy - Third Edition List of Terms

LIST OF KEY TERMS 100 reserve banking system Absolute advantage Absolute surplus value Abstract , social labor Accounting profit Actual budget Actual investment Actual money holdings consumption function Aggregate demand ( AD ) curve Aggregate expenditures model Aggregate production function Aggregate profits ( Aggregate supply ( AS ) curve Aggregate wage (

1334 DANIEL SAROS Allocation mechanisms efficiency Animal spirits Annual mass of surplus value Annual rate of profit Annual rate of surplus value Annual value of Appreciated Appropriated programs ( discretionary programs ) Arbitrage Arc elasticity Asset demand for money Asset price bubbles Assets Austerity measures Austrian definition of the money supply ( Ma ) Autarky Automatic stabilizers Autonomous consumption Autonomous saving

PRINCIPLES Average cost pricing Average fixed cost ( Average product ( AP ) Average profit Average resource cost ( ARC ) Average revenue ( AR ) Average revenue product ( Average tax rate Average total cost ( ATC ) Average variable cost ( Balance of payments accounting Balance sheet Balance sheet equation Balanced budget Balanced budget amendments Balanced trade Bank capital Bank capitalists Bank loan capital Bank operating capital 1335

1336 DANIEL SAROS Bank run Banker for commercial banks Banker for the federal government Barter economies Best response Bilateral monopoly Bond Bond market policy Bourgeoisie Budget deficit Budget line Budget set Budget surplus Business cycle Business fixed investment Capital Capital account Capital and financial account deficit

PRINCIPLES Capital and financial account surplus Capital consumption Capital gain Capital loss Capitalist mode of production Cardinal utility Cartel Cash reserves Cash surrender values Center Central bank independence Centralization of capital Centrally planned allocation Certificates of deposit ( assumption Chair of the Federal Reserve Board Change in demand Change in quantity demanded Change in quantity supplied Change in supply 1337

1333 DANIEL SAROS Civilian population Class exploitation Cobweb model Coercive monopoly Collateralized debt obligations ( Command capitalism Command socialism Commercial capitalists Commercial profit Commodity Commodity bundle Commodity circuit Commodity money Commodity space Communist mode of production Comparative advantage Comparative statics analysis Compensation Competitive devaluation Complements

PRINCIPLES Complete accommodation Complete crowding out Complex labor Compound interest Concentration of capital Concrete , private labor of interest Conspicuous consumption Constant capital ( Constant returns to scale ( industry Consumer credits Consumers surplus Consumption function ( tight ) monetary policy fiscal policy Convertible paper money Core of the SSA Corporate profits analysis 1339

1340 DANIEL SAROS Cost function Coupon bonds Craft unions Credit Credit rating agencies Credit unions Cross forms elasticity of demand Currency Currency crisis Current account Current Account Balance Current account deficit Current account surplus Cyclical unemployment Daily value of Dead labor ( Dead product (

PRINCIPLES Deadweight loss Debit Debt monetization Decreasing returns to scale ( industry Deep poverty Default Demand for money Dependency theory Dependent variables Deposits Depreciation Derived demand Devaluation Dialectical idealism Dialectical materialism Digital currencies 1341

1342 DANIEL SAROS Diminishing marginal benefit of consumption Diminishing marginal rate of substitution Diminishing returns to labor Discount loans Discount loans ( Discount rate ( id ) Discounted Discouraged workers Discourse of scale ( DOS ) Dividends Domestic terms of trade Dominant equilibrium Dominant strategy Double coincidence of wants problem Double coincidence of wants problem Duopoly market Durable goods Dynamic efficiency Economic base ( or mode of production )

PRINCIPLES 1343 Economic contraction Economic efficiency Economic forecasts Economic growth Economic models Economic problem Economic profit Economic surplus Economics Economies of scale ( Effective money supply ( Effective or binding ( price ceilings and price floors ) Elastic Employed Endogenous money supply Endogenous preferences Endogenous variable Entitlement programs Entry point Equilibrium

1344 DANIEL SAROS Equilibrium aggregate profit Equilibrium bond price Equilibrium exchange rate Equilibrium interest rate Equilibrium quantities exchanged Equilibrium quantity of bonds Equilibrium quantity of loanable funds Excess capacity theorem of monopolistic competition Excess demand Excess reserves Excess supply Exchange rate regime Exchange value Exogenous money supply Exogenous preferences Exogenous variable Expanded form of value Expansionary ( easy ) monetary policy Expansionary fiscal policy

PRINCIPLES 1345 Expenditures approach Explicit costs Exploitation Extra gross wages Factor markets ( input markets or resource markets ) Fallacy of composition Federal debt Federal funds market Federal funds rate Federal Open Market Committee ( Federal Reserve Federal Reserve Banks ( Federal Reserve Board of Governors Federal Reserve Notes Federal Reserve open market purchases of securities ( Feudal mode of production Feudal system Fiat money Final capital goods

1346 DANIEL SAROS Financial account Financial capital Fiscal policy Fixed exchange rate regime Fixed exchange rates markets Flat tax Flexible exchange rates markets Floating exchange rate regime Flow variable Flow variable Forced saving Foreign assets Foreign exchange value Form of property ownership concentration ratio Fractional reserve banking system Free in a double sense Free rider effect

PRINCIPLES 1347 Free trade Frictional unemployment Full employment Full employment balanced budget reference line Full employment budget Functional distribution of income Future value Game Genera . annual rate of profit ( rA ) Genera . annual rate of surplus value ( eA ) Genera . equilibrium model Genera . form of value Genera . rate of interest ( ig ) Genera . rate of profit ( Genera . rate of profit ( coefficient Government budget gap Government expenditures multiplier

1343 DANIEL SAROS Government purchases Government transfer payments Great Recession Gross domestic product ( Gross National Happiness ( Gross National Product ( Gross private domestic investment triangle triangle Index ( Heterodox economics Heterogeneous resources High degree of concentration High time preference Homogeneous resources Horizontal Summation Hourly value of Hybrid forms Imperialism

PRINCIPLES Implicit costs Import quota Import tariff Imputed value Income Income approach Income deficit Income effect Income elasticity of demand Income surplus Income tax brackets leisure tradeoff identity Inconvertible paper money Increasing marginal cost of production Increasing marginal opportunity costs Increasing returns to labor Increasing returns to scale ( IRS ) industry Independent variables 1349

1350 DANIEL SAROS Indifference curve Indifference map Individual demands Individual supplies Induced consumption Induced saving Induced spending Industrial capitalists Industrial reserve army of the unemployed Industrial unions Inelastic Inferior goods Inflation rate Insolvent Instruments of labor Interest income capital effect Intermediate goods international substitution effect

PRINCIPLES 1351 International terms of trade Interpersonal utility comparisons Inventory investment Investment Invisible hand Iron law of retribution Issuer of currency criterion Cross model Kinked demand curve model of oligopoly Labor Labor force Labor force participation rate Labor market demand curve Labor process Land Law of demand Law of diminishing marginal utility Law of diminishing returns

1352 DANIEL SAROS Law of increasing opportunity cost Law of Supply Law of the tendency of the rate of profit to fall ( Law of value Lender of last resort Liabilities Limited liability Limits to the terms of trade Liquidity Living labor ( Loan losses Loanable funds market Loans Lockout phenomenon Logic Long run Long run aggregate supply ( curve Long run average total cost ( Long run industry supply ( LRIS ) Long run marginal cost (

PRINCIPLES curve Low time preference Lump sum tax multiplier Luxuries money supply money supply money supply equilibrium economics exchange rates spending benefit ( cost ( cost pricing opportunity cost private benefit ( private cost ( product ( 1353 productivity theory of income distribution

1354 DANIEL SAROS propensity to consume ( propensity to save ( rate of substitution ( resource cost ( revenue ( revenue product ( social benefit ( social cost ( tax rates utility revolution allocation capitalism demand equilibrium exchange rate failure power power spectrum

PRINCIPLES price rate of interest share socialism structure supply circular flow model monetary theory theory of fiat money efficient scale of consumption income of exchange costs capital individualism efficient scale ( MES ) 1355 1356 DANIEL SAROS economies degree of concentration monopoly capital expression of labor time ( MELT ) policy capitalist SSA form of value market market deposit accounts ( market instruments market mutual funds ( multiplier stock supply wage ( nominal wage ) capitalists Competition merchant capital

PRINCIPLES capital capital ed securities ( counting expansion of bank deposits effect causality equilibrium income income accounting monopoly rate of interest unemployment poverty labor ( product ( returns to labor Income and Product Accounts ( NIPA ) 1357

1353 DANIEL SAROS time preference related variables circular flow model economics Synthesis model creditor debtor Domestic Product ( exports foreign factor income interest International Investment Position investment position marginal gain social product worth ( equity ) goods monetary expansion time preference of money

PRINCIPLES goods bias interest rate goods goods profit statement in the labor force Objects of labor deficit surplus Offer curves Official poverty rate Official reserve holdings Oligopoly deficit surplus Open market operations Gross Domestic Product ( monetary expansion in the civilian population 1359

1360 DANIEL SAROS Opportunity costs Optimal plant size Ordinal utility Organic composition of capital ( Original means of production Orthodox economics Outcomes Overshooting Paradox Paradox of thrift Partial crowding out Partial equilibrium model Partial specialization Partnerships Payoff matrix Payoffs Peak Per capita real Perfect competition Perfect income equality

PRINCIPLES Perfect income inequality Perfect price discrimination Perfectly elastic Perfectly inelastic Periphery Personal consumption expenditures tax Planned investment Players Point elasticity form Positive statement Positive sum game Positive time preference Positively related variables War SSA Postwar SSA Potential Poverty Poverty threshold 1361

1362 DANIEL SAROS Precautionary demand for money Present value consumption function Price ceiling Price discrimination Price elasticity of demand Price elasticity of supply Price Price index Price leadership model Prices of production Primary market Primitive accumulation Primitive communist mode of production Principal Private capital stock Private ownership Private transfer payments

PRINCIPLES 1363 Processor of checks Producer credits Producers surplus Product market Production possibilities frontier ( Production possibilities model Production possibilities schedule Production price ratio Production technology Productive efficiency Profit income Profit of enterprise Progressive tax system Proletariat Promoters profit Proportional tax system Public goods Purchasing power Quality change bias Quantity Equation

1364 DANIEL SAROS Quantity Theory of Money institution Quintile ratio Rate of interest ( i ) Rate of profit Rate of profit of enterprise Rate of surplus value ( or degree of exploitation ) Ratio of income to poverty Rational protectionism Real growth rate Real per worker Real Gross Domestic Product ( Real interest rate Real wage ( Rectangle of redistribution Reference line Regressive tax system Regulator of the money supply Regulatory capture

PRINCIPLES 1365 Relative surplus value Rental income activities Reserve army of the unemployed Reserve requirement Reserve requirement ratio ( Residential fixed investment Resource market Resources ( factors of production or inputs ) Retainable industries Retained earnings Revaluation Sales effort Satellites Saving function Savings and loan associations Say Law of Markets Scientific method Secondary market Securities

1366 DANIEL SAROS prophecy Services Shareholders Short run Short run aggregate supply ( curve Short run average total cost ( Shortage Simple commodity circuit Simple deposit multiplier Simple form of value Simple labor Simple Reproduction Simultaneous games mode of production form required per unit of commodity ( Social forces of production Social formations Social market economy Social relations of production

PRINCIPLES 1367 Social structure of accumulation ( SSA ) Social structure of accumulation ( SSA ) theory Social superstructure Socialist mode of production Socially necessary abstract labor time ( Sole Special unemployment rate Specialization and division of labor Speculative demand for money Stable equilibrium State ownership Static efficiency Statistical discrepancy Sticky prices Stock variable Stocks Store of value Strategies Structural unemployment

1363 DANIEL SAROS Structure of production Suboptimal outcome Subprime mortgage loans Subsidies Substitutes Substitution bias Substitution effect Supervisor of banks Supplemental poverty measure Supply price Surplus Surplus labor ( Surplus product ( Surplus value Tariff Taxes Taxes on production and imports Technology Term to maturity The tangent line method

PRINCIPLES Theocratic governments Theory of purchasing power parity Thrift institutions Time asymmetry Time constraint Time preference To To To To To To To To To To To al cost ( al fixed cost ( al labor ( al opportunity cost al product ( al resource cost ( al revenue al surplus al utility al value ( al variable cost ( Trade balance Trade deficit Trade surplus 1369

1370 DANIEL SAROS Trading possibilities frontier ( Transaction costs Transactions demand for money Transformation problem Trough Turnover time contraction growth a stock issue rate exchange causality budget deficit budget surplus businesses nit elastic PRINCIPLES 1371 nit of account equivalent liability goods equilibrium se value ( Valorization process Value Value of Value of money ( OM ) Value ratio Variable capital ( Good Velocity of money Vice Chair of the Federal Reserve Board Wage elasticity of labor supply

1372 DANIEL SAROS spiral Law Wants Wealth wealth effect Yield to maturity discount rate ( id ) game