Competency 2.5 - evaluate the roles of government, central banking systems, and specialized institutions in market and command economies Flashcards
monopoly
when a firm becomes the sole provider of a good or service with no competition
oligopoly
when a small group of firms are the sole provider of a service or good with no competition
stock
pieces of ownershif of a firm or company that is sold by them to increase investors
shareholders / stockholders
people who own stock
dividends
payments a shareholder recieves for owning stock for a firm or company
stock exchange
a place where public stocks are traded freely in an open market
stock market
the epitome of the market economy, a place where transactions take place exclusively for the purpose of making money
capital gain
the profit received from buying a stock at a lower price and then selling it a higher price
central bank
this institution exists in a market economy to oversee the ability of the banking system and conduct monetary policy in order to control inflation
corporations
compete with each other in a market economy for profit