Competency 2.5 - evaluate the roles of government, central banking systems, and specialized institutions in market and command economies

Question 1

monopoly

Answer 1

when a firm becomes the sole provider of a good or service with no competition

Question 2

oligopoly

Answer 2

when a small group of firms are the sole provider of a service or good with no competition

Question 3

stock

Answer 3

pieces of ownershif of a firm or company that is sold by them to increase investors

Question 4

shareholders / stockholders

Answer 4

people who own stock

Question 5

dividends

Answer 5

payments a shareholder recieves for owning stock for a firm or company

Question 6

stock exchange

Answer 6

a place where public stocks are traded freely in an open market

Question 7

stock market

Answer 7

the epitome of the market economy, a place where transactions take place exclusively for the purpose of making money

Question 8

capital gain

Answer 8

the profit received from buying a stock at a lower price and then selling it a higher price

Question 9

central bank

Answer 9

this institution exists in a market economy to oversee the ability of the banking system and conduct monetary policy in order to control inflation

Question 10

corporations

Answer 10

compete with each other in a market economy for profit