Unit 3 Flashcards
(21 cards)
What is market structure?
Where similar companies sell similar products.
How is market structure defined?
Number of sellers, barriers to entry, control over prices, and amount of advertising.
What is a price searcher?
A businesses that sell can find their own price.
What is a price taker?
A business that has to stay around the same prices as other businesses in that market.
What is a patent?
Something that allows people to have a MONOPOLY on inventions.
What is a copyright?
Something that allows people to have a MONOPOLY on written works.
What are externalities?
Effects of a businesses choices.
What is unlimited liability?
When a business HAS TO pay their debts from personal assets.
What is limited liability?
When a business DOESN’T have to pay their debts in personal assets.
What is a dividend?
Money paid to the owner of a corrporation’s stock.
What is collective bargaining?
Negotiation of wages and other conditions of employment by an organized body of employees.
List the four market structures from least competitive to most competitive.
Monopoly, oliogopoly, monopolistic, pure
Why does our government allow some monopolies today?
Monopolies reduce waste and it allows the government to keep track of the businesses easier.
What is a sole proprietorship?
When a business is ran by one person.
What is a partnership?
When a business is ran by a couple people.
What is a corporation?
A legal entity, owned by stock owners.
What are 3 ways that labor unions benefit its members.
It increases wages, makes work places safer, and trains workers.
What are 3 things that determine wage rates.
Education, productivity, supply of labor.
What would happen to wages if the demand for employees is high but the supply is low.
Wages would increase.
What type of unemployment would affect someone who’s job is moving to another country
Structural
If someone lost a job, but has “transferable skills”, what type of unemployment would they be facing
Frictional
