Absoute advantage (page585)Situation in which coury I has an advantage over country 2in producinga good because the of producing the good than the co of producing it in2. Accounting cost (page 204)Actual expenses plus depreciation charges for capital equipment. Accounting profit(Page 273)The difference between a firm's revenues and its costs,including accounting depreciation but excluding any opportunity costs Actual r (page 168)Return that an ass earns Actuarially fair (page 163)Situation in which an insurance premium is equal to the expected payout. Adverse selection (page 598)Form of market failure resulting from asymmetric information:if insurance companies must charge a single premium because they cannot distinguish between high-risk and low-risk individuals,more high-isk individuals will insure,making it unprofitable Advertising elasticity of demand (page 405)Percentage change in quantity demanded resulting from a I-percent increase in advertising expenditures. Advertising-to-sales ratio(page 405)Ratio of a firm's advertising expenditures to its sales. )Rulesand regulations prohibiting actions that restrain,re likely to restrain,competition Arbitrage(page 8)Practice of buying at a low price at one location and selling at ahigher price in another Are elasticity of demand (Page 120)Price elasticity calculated over arange of prices 547A constant that measures the sensitivity ofan asset's retur to marke movements and,therefore,the asset's nondiversifiable risk. Asymmetric information (page 596)Situation in which a buyer and a seller possess different information about a transaction Auction markets (page 491)Markets in which products are bought and sold through formal Average cost(page 209)Production cost per unit of output. Average expenditure(page 352)Price paid per unit of a good. Average expenditure curve(Page 510)Supply curve representing the price per unit that a firm (pag e9)Fixed cost divided by the level of oupu Average produet (Page 182)Output per unit of a particular input Average revenue (page 329)Revenue divided by the number of units sold,i.e.price per unit. Average total cost(ATC)(Page 209)Firm's total cost divided by its level of output. Average variable cost(AVC)(page 210)Variable cost divided by the level of outpu Backward-bending labor supply ve(page 511)The portion of the labor supply curve at which the wage rate increases and the hours of work supplied decreases,giving the curve a negative slope. Bad (page 70)Good for which less is preferred rather than more. Bandwagon effect(攀比效应)Page127)Positive network externality in which a consumerAbsolute advantage (page 585) Situation in which country 1 has an advantage over country 2 in producing a good because the cost of producing the good in 1 is lower than the cost of producing it in 2. Accounting cost (page 204) Actual expenses plus depreciation charges for capita1 equipment. Accounting profit (Page 273) The difference between a firm’s revenues and its costs, including accounting depreciation but excluding any opportunity costs. Actual return (page 168) Return that an asset earns. Actuarially fair (page 163) Situation in which an insurance premium is equal to the expected payout. Adverse selection (page 598) Form of market failure resu1ting from asymmetric information: if insurance companies must charge a single premium because they cannot distinguish between high-risk and low-risk individuals, more high-risk individuals will insure, making it unprofitable to sell insurance. Advertising elasticity of demand (page 405) Percentage change in quantity demanded resulting from a 1-percent increase in advertising expenditures. Advertising-to-sales ratio (page 405) Ratio of a firm's advertising expenditures to its sales. Agent (page 609) Individual employed by a principal to achieve the principal's objective. Antitrust laws (Page 360) Rules and regulations prohibiting actions that restrain, or are likely to restrain, competition. Arbitrage (page 8) Practice of buying at a low price at one location and selling at a higher price in another Arc elasticity of demand (Page 120) Price elasticity calculated over a range of prices. Asset (page 166) Something that provides a flow of money or services to its owner. Asset beta (page 547) A constant that measures the sensitivity of an asset's return to market movements and, therefore, the asset's nondiversifiable risk. Asymmetric information (page 596) Situation in which a buyer and a seller possess different information about a transaction. Auction markets (page 491) Markets in which products are bought and sold through formal bidding processes. Average cost (page 209) Production cost per unit of output. Average expenditure (page 352) Price paid per unit of a good. Average expenditure curve (Page 510) Supply curve representing the price per unit that a firm pays for a good. Average fixed cost (AFC) (page 209) Fixed cost divided by the level of output. Average product (Page 182) Output per unit of a particu1ar input. Average revenue (page 329) Revenue divided by the number of units sold, i.e., price per unit. Average total cost (ATC) (Page 209) Firm’s tota1 cost divided by its level of output. Average variable cost (AVC) (page 210) Variable cost divided by the level of output. Backward-bending labor supply curve (page 511) The portion of the labor supply curve at which the wage rate increases and the hours of work supplied decreases, giving the curve a negative slope. Bad (page 70) Good for which less is preferred rather than more. Bandwagon effect(攀比效应) (Page 127) Positive network externality in which a consumer