Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > 3.1.5-Competitive and concentrated markets > Flashcards

3.1.5-Competitive and concentrated markets Flashcards

1
Q

What is a closed economy?

A

An economy where goods and services are provided only by the public sector

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

What does diversified mean?

A

When firms expand into different industries

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

What are market structures?

A

How markets operate to enable buyers and sellers to come together

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

What is a merger?

A

Where 2 or more companies join together

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

What is a mixed economy?

A

An economy where goods and services are provided by both the public and private sector

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

What is a multinational company (MNC)

A

A company that has outlets or production facilities in more than one country. Usually plc’s-public limited company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are nationalised industries?

A

Public corporations previously part of the private sector

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

What is an open economy?

A

An economy where goods and services are provided by only the private sector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is product differentiation?

A

How firms make a good or service different to those of its competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is aquisition?

A

When one firm takes over another but controlling more than 50% of it

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

What are barriers to entry?

A

Obstacles which might discourage or prevent firms from entering the market, both visible and invisible

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

What are competitive markets?

A

Market structures where there is a potential competition between producers

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

What is a cartel?

A

Where small groups of large firms work together to keep prices high and therefore keep all their profits high-usually illegal

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

What is collusion?

A

Informal agreement between firms to restrict competition

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

What is a monopoly?

A

Where there is only one provider of a good or service

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

What is monopoly power?

A

When a firm owns at least 25% of the market share

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

What is an oligopoly?

A

Where a few dominant firms have a large share of a particular market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a patent?

A

A licence that allows the inventor to use it exclusively

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

What is a price maker?

A

The leading firm who sets the market price

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

What is a price taker?

A

A firm that sets their prices based on the price maker

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

What is price war?

A

One firm reduces their price and others follow

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

What is derived demand?

A

Demand that arises due to demand for another good or service

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

What is direct tax

A

Tax taken from your wage / salary

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

What is gross pay?

A

Total pay before deductions are taken off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is income tax?

A

A progressional tax taken directly from your salary/wage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is labour mobility?

A

The ease at which workers can move geographically and occupationally

26
Q

What is national insurance contribution (NIC)

A

A direct proportional tax that is typically around 13% of income. It pays for public services like the NHS and state pensions

27
Q

What is net pay?

A

Total pay after all deductions such as tax and national insurance are taken off

28
Q

What are professionals?

A

People who have jobs that require post-graduate qualifications, e.g. doctor, teacher

29
Q

What is progressive tax?

A

The more you earn the higher % you pay in tax

30
Q

What is proportional tax?

A

Everyone pays the same % in tax

31
Q

What is salary?

A

A fixed amount you receive each month usually expressed as a yearly amount

32
Q

What are trade unions?

A

Organisations of workers that negotiate wages, working conditions and hours. Collective bargaining

33
Q

What does value-added mean?

A

Value is added by work being done to it

34
Q

What is wage?

A

The hourly rate for labour, often calculated weekly

35
Q

What are dominant firms?

A

Firms that have a significant share of a particular market

36
Q

What are characteristics of dominant firms?

A
  • Often produce a particular type of branded product or service
  • Usually in high demand
  • Control prices
37
Q

What are advantages of small firms?

A
  • Flexibility
  • Personal service
  • Better communications
  • Innovation
38
Q

What are disadvantages of small firms?

A
  • Higher costs
  • Lack of finance
  • Difficult to employ specialists
  • Vulnerable
39
Q

What are advantages of large firms?

A
  • Market domination
  • Economies of scale
  • Large-scale contracts
40
Q

What are disadvantages of large firms?

A
  • Too bureaucratic
  • Co-ordination and control
  • Lack of motivation
41
Q

What are the 4 types of market structures?

A
  • Perfect competition
  • Monopolistic competition
  • Oligopolies
  • Monopolies
42
Q

What are the characteristics of perfect competition?

A
  • Large number of firms in the market
  • No individual producer has control over the price-price is set by the market
  • Low barriers to entry
  • Low differentiation
  • Example-Polish Onion farmers
42
Q

What are the characteristics of monopolistic competition?

A
  • Large number of firms in the market
  • Some control over prices
  • Fairly low barriers to entry
  • High differentiation
  • Example-Restaurants
43
Q

What are the characteristics of oligopolies?

A
  • A few large firms in the market
  • High price control
  • High barriers to entry
  • Example-Car manufacturers
44
Q

What are the characteristics of a monopoly?

A
  • One dominant firm in a market (at least 25% power)
  • High price control
  • Extremely high barriers to entry
  • Example-Google
45
Q

What are the 3 types of economies?

A
  • Open
  • Closed
  • Mixed
46
Q

Why does competition exist?

A
  • To survive in a market
  • Profit maximisation
  • Increased market share
  • Increased efficiency
47
Q

What is price competition?

A

Where firms lower their prices in order to increase their customer base-this increases market share

48
Q

What are examples of non-price competition?

A
  • Convenient location
  • Unique or specialised goods
  • Quality
  • Marketing/advertising
  • Brands
49
Q

How do competitive markets impact consumers?

A
  • Lower prices
  • More choice
  • Higher quality
  • Innovation
50
Q

How do competitive markets impact producers?

A
  • More customers-no monoposony
  • Less profits
  • Risky
51
Q

How do competitive markets impact the government?

A
  • If producers recieve lower profits it means that tax revenue isn’t as high for the government
52
Q

How do non-competitive markets impact consumers?

A
  • Higher prices
  • Less choice
53
Q

How do non-competitive markets impact producers?

A
  • Large profits
  • More funds to innovate
54
Q

How do non-competitive markets impact the government?

A
  • Larger taxation revenues for the government
55
Q

Who supplies and demands labour?

A

Workers are the supply of labour and firms demand labour

56
Q

What is the price of labour also called?

A

The wage rate

57
Q

How are wages determined?

A

The interaction of demand and supply

58
Q

Whar are factors that can cause the labour market to not operate perfectly?

A
  • Workers unwilling to move
  • Personal factors-such as family ties
  • Information failure-people may be unaware of all possible job opportunities
59
Q

How are workers paid?

A

Workers are paid a salary where their annual pay is divided into 12 equal parts and is paid monthly. Others are paid based on an hourly wage.

60
Q

What are factors affecting the demand for labour? [6]

A
  • The state of the economy
  • Changing demand in a certain industry
  • Wage rates
  • Real wages
  • Productivity of labour
  • Profitability of firms
61
Q

What are factors affecting the supply of labour?

A
  • Wage rate
  • Other money payments (such as overtime)
  • Size of the working population
  • Non-monetary factors
  • Barriers to entry
  • Educaion and training

Economics (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions