ECONOMICS Flashcards
Misuse of Market power-
To use the power they have to eliminate or
damage a competitor or to prevent a
business from entering into a market
Predatory Pricing -
The pricing of goods or services at such a
low level that other firms cannot compete
and are forced to leave the market
Exclusive Dealing-
It occurs when one person is trading with
another and imposes some restrictions on the
other’s freedom to choose with whom, in what,
or where they deal.
Resale Price Maintenance -
An agreement between a manufacture and a
wholesaler or retail not to sell a product below a
specific price.
Mergers and Take Overs -
When they combine 2 previously separate firms into a
single legal entity.
Deficit Definition -
The amount by witch something, especially a
sum of money, is too small.
Surplus Definition -
where there’s stuff left over because the requirements have been met.
What are the 2 certainties of life? -
Death + taxes
Big Governments -
More people are involved
Good: controls more of your daily routine.
Bad: There are more taxes.
Small Governments -
Less people are involved.
Good: You re free to do what you want.
Bad: The rich people have more control over you.
Why do we need consumer laws? -
so that every transaction is fair for consumers and produces.
Unconscionable conduct. -
Unfair or unreasonable actions by a product.
Misleading or deceptive conduct. -
Claims about goods or services that aren’t true.
Conduct that may mislead the public. -
E;g using a brand name that is similar to a well- known brand name.
Bait advertising -
advertising some products at lower prices and directing customers at hight priced items.
Referral selling -
Offer a special price to a customer if the customer refers potential customers to the seller.
What is a warranty? -
= a guaranty.
How do Laws protect consumers and producers?
It insures that every transaction is fair to consumers and producers.
Tangible. -
Able to be physically touched.
Intangible. -
Can’t be physically touched
