Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Economy > Test 7 > Flashcards

Test 7 Flashcards

(90 cards)

Start Studying
0
Q

Four Characteristics of Pure Competition

A
  1. Many buyers and sellers
  2. Identical goods or services are offered for sale
  3. No buyer or seller knows more than any other about the market
  4. Buyers and sellers are able to enter or exit the market at will
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Pure Competition

A

Industry made up of many small businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How many buyers and sellers are in Pure Competition?

A

Enough that no individual can influence the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Monopolistic Competition

A

A market where many firms are selling similar, but not identical, products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Three Characteristics of Monopolistic Competition

A
  1. Many buyers and sellers
  2. Products are slightly different
  3. It is easy to enter or exit the market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Oligopoly

A

A market dominated by a few large firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Characteristics of Oligopoly

A
  1. There are few sellers
  2. They produce and sell either identical or slightly different products
  3. There are significant barriers to entry (difficult to enter the market)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Barriers to Entry

A

Anything that prohibits a firm from entering the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Examples of Barriers to Entry

A
  1. Legal Barriers
  2. Extremely low average total costs
  3. Exclusive ownership of a scarce resource
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Example of Legal Barriers

A
  1. Public Franchise
  2. Patent
  3. Copyright
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Public Franchise

A

A right granted to a firm by the government that permits that firm to provide a particular good or service, and excludes all others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Patent

A

A monopoly to use a new product or idea exclusively for 17 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Copyright

A

The exclusive right of authors of original writings and artistic works to sell or in any way reproduce their work for their lifetime plus several more decades

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Monopoly

A

A market where there is only one seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Characteristics of Monopoly

A
  1. There is no close substitute for the product

2. The high cost of entry prohibits other companies from entering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Sherman Anti-Trust Act does what

A

Outlaws monopolies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Legal Monopolies

A
  1. Public Utilities
  2. Patent
  3. Copyright
  4. Trademarks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Trademark

A

A special design, name, or symbol that identifies a product, service, or company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Trust

A

A business combination where management and control of the member corporations are vested in a single Board of Trustees who are able to control a market, absorb or eliminate competition, fix prices, ect.
(Trusts are illegal)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Pool

A

An agreement to divide business and share the profits

Illegal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Interlocking Directorate

A

Where some of the same people serve on multiple Boards of Directors and they run all of these companies as the same company
(Illegal)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Stock Watering

A

Where they lie about a companies profits

Illegal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the purpose of Stock Watering

A

To sell stock of your company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Holding Company

A

A corporation that is organized to hold the bonds or stock of other corporations
(Legal)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Merger
A combination of two or more companies into one
25
What happens after the merger
The acquired firm is either dissolved or becomes a division of the combined new firm
26
Why do they have mergers?
1. To add new products 2. To benefit from increased size 3. To reduce or eliminate competition 4. To reduce costs
27
Type of Mergers
1. Horizontal Merger 2. Vertical Merger 3. Conglomerate Merger
28
Horizontal Merger
A combination of two or more companies engaged in the same business
29
Vertical Merger
A combination of two or more companies involved in different steps of the same production process
30
Conglomerate Merger
A combination of two or more unrelated businesses
31
Sherman Anti-Trust Act
Prohibits any business combination that is in restraint of trade
32
Clayton Anti-Trust Act
Specified what acts were in restraint of trade
33
Federal Trade Commission Act
1. Sets up the Federal Trade Commission | 2. Prevents misleading advertising and other unfair business practices
34
Celler-KeFauver Anti-Merger Act
Declares mergers to be illegal where they serve to lessen competition or tend to create monopoly
35
Types of Workers
1. White collar | 2. Blue collar
36
Differences Between White and Blue Collar
Blue collar does more physical labor | White collar might make more money
37
Types of Blue Collar Workers
1. Skilled | 2. Unskilled
38
Skilled Labor
Have training
39
Unskilled Labor
Not trained
40
Are there more skilled or unskilled workers?
Unskilled
41
Labor Union
An organization that seeks to increase the wages and improve the working conditions of its members
42
Why Do People Join Labor Unions?
1. Higher wages 2. Better hours 3. Safety/working conditions 4. Job security 5. Legal protection/benefits
43
Types of Labor Unions
1. Craft Union | 2. Industrial Union
44
Craft Union
A union organized to include workers with a specific set of skills or occupations regardless of where or what industry they are employed
45
Industrial Union
A union organized to include all workers in an industry regardless of skills
46
Open Shop
Union membership may never be required as a condition of employment TN is a open shop state
47
Closed Shop
Union membership is a condition of initial employment | Illegal
48
Union Shop
Union membership may not be required of initial employment, but after a certain period of time Union membership may be required to keep the job
49
Biggest weapon that a Labor Union can use?
Strike
50
Strike
Work stoppage
51
Purpose of Strikes?
Put pressure on the employer
52
Picket
Standing outside the factory with signs
53
Purpose of Picket Line
1. To draw attention 2. To discourage business 3. Stop strike breakers
54
Strike Breakers
Substitute workers to take over for the strikers
55
Types of Strikes
1. Jurisdictional Strike | 2. Secondary Strike
56
Jurisdictional Strike
A strike that involves one company and two labor unions
57
Secondary Strike
A strike that involves two companies and one labor union
58
How does a Jurisdictional Strike work?
A union goes on strike against a company because of grievances against another labor union in order to get concessions from a company
59
How does a Secondary Strike work?
A labor union goes on strike against a company, which it has no grievances with, in order to force it to put pressure on a company that it does have grievances with
60
Management Weapons Against Labor Unions
1. Yellow Dog Contract 2. Blacklisting 3. Lockout 4. Strike Breaker 5. Scab
61
Yellow Dog Contract
In order to be hired, you must pledge to not join a labor union (Illegal)
62
Blacklisting
Employers prevent fired employees by giving a list with their name to other companies (Illegal)
63
Lockout
Management closes the business in order to put pressure on the workers (Illegal)
64
Strike Breaker
Someone who comes in and works while the labor union members are on strike
65
Scab
Worker that is paid to spy on other workers
66
First National Labor Union
National Labor Union
67
Leader of National Labor Union
Sylvias
68
2nd National Labor Union
Knights of Labor
69
Leader of Knights of Labor
Uriah Stephens
70
How is Knights of Labor different?
Included: All races Both genders Skilled and unskilled
71
What labor union was founded after these died out?
American Federation Union
72
Leader of the American Federation of Labor
Samuel Gompers
73
Leader of American Railway Union
Eugene Debbs
74
Who could be in the American Railway Union
Anyone who works in the railways
75
Congress of Industrial Organizations (Labor Union) was formed by who
John Lewis
76
Leader of AFL-CIO (American Federation of Labor-Congress of Industrial Organizations)
George Meany
77
What happened to AFL-CIO
It became the largest labor union
78
Conspiracy Doctrine
An individual worker has the right to make demands of an employer but when two or more worker ban together it becomes an illegal conspiracy
79
Commonwealth vs. Hunt
Labor unions are legal
80
Clayton Act
Excludes the labor unions from anti-trust laws
81
Norris-LaGuardia Act
Outlaws Yellow Dog Contracts
82
Wagner Act
1. Guarantees a workers right to join a labor union and collective bargain 2. Made it illegal to discriminate against labor union workers
83
Fair Labor Standards Act
Provides for a minimum wage and anything beyond 40 hours a week, you have to be paid .5x extra
84
Taft-Harley Act
1. Outlaws Closed Shop | 2. Gives the states the authority to pass Right to Work Laws (open shop)
85
Landrum-Griffin Act
Purpose was to reduce corruption in labor unions The embezzlement of union funds becomes a federal offense Union election would use the secret ballot
86
Civil Rights Act
Prohibits discrimination in hiring, firing, and promotions on the basis of race, color, religion, gender, or national origin
87
Arbitration
Involved a third party known as the arbitrator to solve problems Each side presents their case to the arbitrator The arbitrator will then hand down a legally binding decision which can only be overturned through the courts
88
Mediation
Involves a third party known as the mediator Each side presents their case to the mediator The mediator then tries to get both sides to reach an agreement (not legally binding)
89
Conciliation
Involves a third party that is chosen Third party tries to get both sides to negotiate Third party is not actively involved in the negotiation (unlike mediation)

Economy (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions