Final Exam Flashcards
Private sector
The part of the economy that involves the transactions of individuals and buissnesses
Public sector
The part of the economy that involves the transactions of the government
Role of profit in a market economy
Provides incentive
Non-price factors that effect demand curve cause it to shift
Shift to the right
Non-price factors that effect supply curve cause it to
Decrease supply as price increases
Advantage of sole proprietorship
Get all profits, total control, easy to start, be the boss
Disadvantage of corporation
Double taxation, too big and bureaucratic
Describe role of securities and exchange commission
An agency of the government that tracks illegal activities in the stock market
List four market structures
Perfect competition-corn, monopolistic competition-miss me jeans, oligopoly-mcdonalds and monopoly-Texas rangers
Comparitive advantage
The ability of a nation to produce at a lower opprobrium it’s cost
Absolute advantage
The ability to produce more of a given product using a given amount of resources
4 types of unemployment
Seasonal-shut down for a season, structural-skills don’t match, cylinical-rises during economic downturns and Dallas when economy recovers, frictional-take time to get job
Recession
Prolonged economic retraction when GNP Is declining an unemployment is rising
Three options for unions to settle disputes
Strike-halt in production
Mediation-using a neutral mediator
Arbitration-using a third party to review case
Collective bargaining
Union and company reps meet to negotiate a new labor contract
