L#. ECONOMIC INSTITUTION Flashcards
(17 cards)
It provides for the production and distribution of good and services, which people in every society need. These are production system, a service system, distribution system, consumer system and system of exchange
Economic Institution
The practice of exchanging things with others for mutual benefit, especially privileges granted by one country or organization to another.
Reciprocity
FORMS OF RECIPROCITY
Gift giving without the expectation of an immediate return.
Generalized reciprocity
FORMS OF RECIPROCITY
There is an explicit expectation of immediate return. Simple barter or supermarket purchases involve this understanding.
Balanced reciprocity
FORMS OF RECIPROCITY
This occurs when there is an attempt to get someone to exchange something he or she may not want to give up or when there is an attempt to get a more valued thing than you give in return. This may involve trickery, coercion, or hard bargaining.
Negative reciprocity
A change of ownership of an asset or movement of funds and or assets from one account to another.
Transfer
A system of economic exchange involving the centralized collection of those goods from members of a group follow by the distribution among those members
Redistribution
The exchange of goods and services through a market
Market Transaction
It is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.
Market
TYPES OF MARKET
Where people come together to exchange goods and services in person, as in a bazaar or shopping center,
Physical Marketplace
TYPES OF MARKET
Buyers and sellers do not interact, as in an online market.
Virtual Marketplace
DIFFERENT TYPES OF MARKET SYSTEMS
A market system characterized by many different buyers and sellers.
Perfect Competition
DIFFERENT TYPES OF MARKET SYSTEMS
It is the exact opposite form of market system as perfect competition. There is only one producer of a particular good or service, and generally no reasonable substitute.
Monopoly
DIFFERENT TYPES OF MARKET SYSTEMS
It is similar in many ways to a monopoly. The primary difference is that rather than having only one producer of a good or service, there are a handful of producers, or at least a handful of producers that make up a dominant majority of the production in the market system
Oligopoly
DIFFERENT TYPES OF MARKET SYSTEMS
It is a type of market system combining elements of a monopoly and perfect competition. Each competitor is sufficiently differentiated from the others that some can charge greater prices than a perfectly competitive firm
Monopolistic competition
It has only one buyer for a particular good or service, giving that buyer significant power in determining the price of the products produced.
Monopsony
A type of polity that is an organized political community living under a single system of government.
State
