credit card:A card that can be used to buy on the margin; allows a consumer to purchase goods and services on credit
and repay the amount with a rate of interest.cross-price elasticity of demand:The percentage change in demand for one good that results from a percentage change
in price from another good.cross-subsidization:Using profits from one area to recover losses experienced in another area of operation.crowding:Singling out a group into certain occupations.crowding out:Occurs when the government competes in the loanable funds market, thereby driving up interest rates
and decreasing the amount firms can borrow.currency convertibility:The ease with which domestic currency can be converted into foreign currency so that foreign
exchange rates can accurately depict the domestic prices of foreign prices.currency in circulation:Coins and paper money used as media of exchange for daily activities.currency substitution:The use of foreign money as a substitute for domestic money when the domestic money has a
high rate of inflation.current account:A list that includes the values of a nation’s imports and exports.current account deficit:Occurs when current account imports outweigh current account exports, forming a negative
balance for the current account.current account exports:The total value of all goods and services exported internationally plus the income earned
from domestically owned firms internationally.current account imports:The total value of all goods imported from other nations plus the income paid to foreigners
who own domestic assets.current account surplus:When current account exports are larger than current account imports. The balance on the
current account is positive.customs union:An organization of nations whose members have no trade barriers.cyclical:Any variable that increases or decreases according to the level of GDP.cyclical majority:A situation in which choices on an issue depend on the order the issue is presented in.cyclical unemployment:Unemployment caused by fluctuations in GDP.D
deadweight loss:The reduction of consumer surplus without a corresponding increase in monopoly profit when a per-
fectly competitive firm is monopolized.debt:Money or credit that is borrowed and owed to a lender.deficit:The point at which debits exceed credits.deflation:A decrease in the price level.demand:The quantities of a good or service that individuals are willing and able to buy at different prices.demand curve:A graphical illustration of quantities of goods and services individuals are willing and able to buy at
various prices.CliffsAP Economics Micro & Macro23 53999X Gloss.qxd 1/23/04 10:31 AM Page 246