No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Appendix A Definition Index 475 D Deadweight loss: the loss in producer’s and consumer’s surplus due to the decrease in mutually beneficial trades. (Chapter 8—Monopoly) Debauch: diluting the value of your currency by inflation (printing more money). (Chapter 14—Application in Public Choice: The National Debt) Default: failing to pay of contractually agreed to debts. (Chapter 14—Application in Public Choice: The National Debt) Deflation: a fall in the general level of prices over time. (Chapter 12—Value of Money) Demand side: the spending decisions in the private sector. (Chapter 17— Macroeconomics Today: Demand vs. Supply Side) Depreciation: the accounting process of allocating costs to the time period when an asset is consumed. (Chapter 16—Valuing the Future—Concepts in Capital and Finance) Derived demand: when demand for any higher order good (further away in time from the ultimate consumption good) results from demand of the final consumption good or service. (Chapter 7—Structure of Production: Stages of Capital/Derived Factor Demand) Discounting: the process of converting future cash flow(s) into present value. (Chapter 16—Valuing the Future—Concepts in Capital and Finance) Discount window: Banks needing additional reserves have the option of borrowing from the Federal Reserve, paying the discount rate. This is referred to as borrowing at the Discount window. (Chapter 12—Federal Reserve Tools) Diseconomies of scale: As a firm gets larger, it may incur higher costs, typically due to bureaucratic inefficiencies. (Chapter 7—Structure of Production: Stages of Capital/ Returns to Scale) Division of labor: separation of production tasks between laborers such that each worker will specialize in a few tasks that are part of an overall production process. (Chapter 2—Increased Production from the Division of Labor) Dollarization: This occurs when a country abandons an independent monetary policy and follows U.S. monetary policy by either directly using dollars or indirectly by issuing additional domestic currency units when backed by dollars. (Chapter 15—Exchange Rate Regimes)