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Gov / Econ > Econ Test 7/8 > Flashcards

Econ Test 7/8 Flashcards

1
Q

perfect competition

A

ideal model of a market economy

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2
Q

perfect competition

A

ideal model of a market economy

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3
Q

market structure

A

economic system of competition among businesses in the same industry

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4
Q

standard product

A

one that consumers see as identical regardless of producer

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5
Q

price taker

A

a business that cannot set the prices for its products. Instead, it accepts the market prices set by the interaction of supply and demand

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6
Q

imperfect competition

A

Market structure lacking one of the conditions needed for perfect competition

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7
Q

monopoly

A

a market structure in which only one seller sells a product for which there are no close substitutes

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8
Q

Cartel

A

a formal organization of sellers or producers that agree to act together to set prices and limit output

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9
Q

price maker

A

a firm that does not have to consider competitors when setting the prices of its products

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10
Q

barrier to entry

A

makes it hard to enter a market

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11
Q

natural monopoly

A

market situation in which the costs of production are lowest when only one firm provides output

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12
Q

government monopoly

A

a monopoly that exists because the government either owns and runs it, or authorizes its producers

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13
Q

technological monopoly

A

a monopoly that exists because the firm controls a manufacturing method, or a type of technology

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14
Q

geographic technology

A

a monopoly that exists because there are no other producers or sellers within a certain region

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15
Q

economies of scale

A

an economic situation in which the average cost of production falls as the producer grows larger

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16
Q

patent

A

legal registration of an invention or a process that gives the inventor exclusive property rights

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17
Q

monopolistic competition

A

many sellers offer similar, but not standardized products

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18
Q

product differentiation

A

the attempt to distinguish a product from similar products

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19
Q

nonprice competition

A

using factors other than low price - such as style, advertising, or giveaways to try to convince customers to buy a product

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20
Q

focus group

A

moderated discussion with small groups of consumers, to learn the demographics of a service

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21
Q

Oligopoly

A

market structure in which only a few sellers offer a similar product.

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22
Q

Market Share

A

percent of total sales in a market

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23
Q

start-up costs

A

expenses that a new business must pay to enter a market and begin selling to consumers

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24
Q

regulation

A

controlling business behavior through a set of rules or laws

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25
Q

antitrust legislation

A

laws that define monopolies and give the power to control and break them

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26
Q

trust

A

group of firms combined for the purpose of reducing competition in an industry

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27
Q

merger

A

one company combines with or purchases another to form a single firm

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28
Q

price fixing

A

when businesses work together to set the prices of competing products

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29
Q

market allocation

A

when competing business negotiate to divide up a market

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30
Q

predatory principles

A

setting prices below cost so that smaller producers can’t afford to participate in a market

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31
Q

cease and desist order

A

ruling that requires a firm to stop an unfair business practice

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32
Q

public disclosure

A

requires businesses to reveal product information to customers

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33
Q

Deregulation

A

involves actions taken to reduce or to remove government oversight and control of business

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34
Q

business organization

A

an enterprise that produces goods or provides services

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35
Q

sole proprietorship

A

a business owned and managed by a single person

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36
Q

limited life

A

a situation in which a business ceases to exist if the owner dies, retires, or leaves

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37
Q

unlimited liability

A

a situation in which a business owner is responsible for all losses, debts, and other claims against the business

38
Q

partnership

A

a business co-owned by two or more people

39
Q

general partnership

A

a partnership in which partners share responsibility for managing the business and each one is liable for all business debts and losses

40
Q

limited partnership

A

one partner is not involved in the day-to-day running of business and is liable only for the funds he or she has invested

41
Q

limited liability partnership

A

all partners are limited partners and not responsible for the debts and other liabilities of other partners

42
Q

market structure

A

economic system of competition among businesses in the same industry

43
Q

standard product

A

one that consumers see as identical regardless of producer

44
Q

price taker

A

a business that cannot set the prices for its products. Instead, it accepts the market prices set by the interaction of supply and demand

45
Q

imperfect competition

A

Market structure lacking one of the conditions needed for perfect competition

46
Q

Cartel

A

a formal organization of sellers or producers that agree to act together to set prices and limit output

47
Q

price maker

A

a firm that does not have to consider competitors when setting the prices of its products

48
Q

barrier to entry

A

makes it hard to enter a market

49
Q

natural monopoly

A

market situation in which the costs of production are lowest when only one firm provides output

50
Q

government monopoly

A

a monopoly that exists because the government either owns and runs it, or authorizes its producers

51
Q

technological monopoly

A

a monopoly that exists because the firm controls a manufacturing method, or a type of technology

52
Q

geographic technology

A

a monopoly that exists because there are no other producers or sellers within a certain region

53
Q

economies of scale

A

an economic situation in which the average cost of production falls as the producer grows larger

54
Q

patent

A

legal registration of an invention or a process that gives the inventor exclusive property rights

55
Q

monopolistic competition

A

many sellers offer similar, but not standardized products

56
Q

product differentiation

A

the attempt to distinguish a product from similar products

57
Q

nonprice competition

A

using factors other than low price - such as style, advertising, or giveaways to try to convince customers to buy a product

58
Q

focus group

A

moderated discussion with small groups of consumers, to learn the demographics of a service

59
Q

Oligopoly

A

market structure in which only a few sellers offer a similar product.

60
Q

Market Share

A

percent of total sales in a market

61
Q

start-up costs

A

expenses that a new business must pay to enter a market and begin selling to consumers

62
Q

regulation

A

controlling business behavior through a set of rules or laws

63
Q

antitrust legislation

A

laws that define monopolies and give the power to control and break them

64
Q

trust

A

group of firms combined for the purpose of reducing competition in an industry

65
Q

merger

A

one company combines with or purchases another to form a single firm

66
Q

price fixing

A

when businesses work together to set the prices of competing products

67
Q

market allocation

A

when competing business negotiate to divide up a market

68
Q

predatory principles

A

setting prices below cost so that smaller producers can’t afford to participate in a market

69
Q

cease and desist order

A

ruling that requires a firm to stop an unfair business practice

70
Q

public disclosure

A

requires businesses to reveal product information to customers

71
Q

Deregulation

A

involves actions taken to reduce or to remove government oversight and control of business

72
Q

business organization

A

an enterprise that produces goods or provides services

73
Q

sole proprietorship

A

a business owned and managed by a single person

74
Q

limited life

A

a situation in which a business ceases to exist if the owner dies, retires, or leaves

75
Q

unlimited liability

A

a situation in which a business owner is responsible for all losses, debts, and other claims against the business

76
Q

partnership

A

a business co-owned by two or more people

77
Q

general partnership

A

a partnership in which partners share responsibility for managing the business and each one is liable for all business debts and losses

78
Q

limited partnership

A

one partner is not involved in the day-to-day running of business and is liable only for the funds he or she has invested

79
Q

limited liability partnership

A

all partners are limited partners and not responsible for the debts and other liabilities of other partners

80
Q

corporation

A

a business owned by individuals, called shareholders or stockholders

81
Q

stock

A

shares of ownership in the corporation

82
Q

dividend

A

part of the profit that the company pays out to stockholders

83
Q

public company

A

a corporation that issues stock that can be freely bought and sold.

84
Q

private company

A

one that retains control over who can buy or sell stock

85
Q

bond

A

a contract a corporation issues that promises to repay borrowed money, plus interest

86
Q

horizontal merger

A

describes the joining of companies that offer the same or similar products or services

87
Q

vertical merger

A

describes the combining of companies involved in different steps of production

88
Q

conglomerate

A

results from a merger of companies that produce unrelated goods or services

89
Q

franchise

A

a business made up of semi-independent businesses that all offer the same products or services

90
Q

cooperative

A

a type of business operated for the shared benefit of the owners, who are also its customers

91
Q

nonprofit organization

A

an institution that acts like a business organization, but usually benefits society

92
Q

San Mateo vs. Southern California and 14th amendment

A

Said businesses should be treated as people

Gov / Econ (4 decks)

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