Tariff – A tax on imports.
Tax incidence – The division of the burden of a tax between
the buyer and the sellers in a market.
Tax multiplier – The ratio of change in the equilibrium
level of GDP to a change in taxes.
Terms of trade – The ratio at which a country can trade its
domestic goods and services for imported goods and services.
Tight monetary policy – Federal Reserve policies that
contract the money supply and therefore raise the interest rates in an attempt
to contract the economy and fight inflation.
Time lags – Delays in the economy’s response to government
policies.
Time series graph – A graph that shows how a variable
changes over time.
Total cost – The cost of all of the factors of production
that are being used by a firm.
Total fixed cost – The cost of a firm’s fixed factors of
production that are being used.
Total product – The total quantity of a good or service that
is produced within a given time period.
Total revenue – The amount spent on a good or service that
is received by the seller. Total revenue
will equal the price of the product multiplied by that total amount of the
product that is sold.
Total revenue test – A method of estimating the price
elasticity of demand by noting whether total revenue increases or decreases
given a price change.
Total surplus – The sum of consumer and producer surplus.
Total variable cost – The cost of a firm’s variable factors
of production.
Trade deficit – This occurs when a country’s exports of
goods and services have a lower value than its imports of goods and services
within a given period of time.
Trade feedback effect – The tendency for an increase in the
economic situation of one country to lead to a worldwide increase of economic
activity, which can then feed back to the original country.
Trade surplus – When a country exports a higher value than
the value of its imports.
Tradeoff – An exchange, or opportunity cost. The thing you give up (money/time or
something else) to get something.
Tragedy of commons – When collective ownership of a property
may not provide the incentives necessary for efficiency because individuals do
not bear the true costs of their actions individually.
Transaction motive – The main reason that people have to hold money, to make purchases of
goods and services.
Transactions costs – The opportunity costs of making trades
in a market or from conducting a transactions.
Transfer payments – Cash payments from the government to
people not in exchange for goods, services, or labor. Transfer payments include welfare, veteran’s
benefits, and social security.
Transfer payments multiplier – The effect that a change in
transfer payments has on aggregate demand.
Treasury bonds, treasury notes, treasury bills – These are
promissory notes issued by the federal government when it borrows money.
Trend – The general tendency for the value of a variable to
rise or fall over time.
