Lesson 8 - Economic Institutions

Question 1

Is a chain of receiving, pain and repayig of goods and services.

Refers to the non-market exchange of goods and labour ranging from direct barter to forms of gift exchange where a return is everntually expected.

Julian Culp/Heiner Schumacher (2011) - the amount sent by the firsy mover depicts a measure of “trust” and the amount returned by the second mover is the measure of “Trusthworthiness or reciprocity”

Answer 1

Reciprocity

Question 2

Transfer of payment is a redistribution of income or wealth in the market system made without goofs or services being recieved in return. Considered as non exhaustive.

Answer 2

Transfers

Question 3

Refers to a system of economic exchange involving the centralized collection of goods from members of a group followed by the redivision of those goods among those members.

Answer 3

Redistribution

Question 4

Where buyers and sellers transact economic goods and services.

Answer 4

Market Transactions

Question 5

3 Examples of Market transactions

Answer 5

-Purchase
-Loans
-Mortage

Question 6

Buyer and seller interact with one another to exchange goods for an amount of money.

Answer 6

Purchases

Question 7

Are money advanced to a business with an interest change that must be paid and returned at some point in the future.

Answer 7

Loans

Question 8

Types of loan that was created for purchasers to be able to make homeownership more attainable.

Answer 8

Mortage

Question 9

4 concepts of Economic Institutions

Answer 9

-Reciprocity
-Transfers
-Redistribution
-Market Transactions

Question 10

Refers to the relationship among economic units in the market structure whereby interventions that are imposed by the government affect the system.

Answer 10

Market and State

Question 11

The system that develops to satisfy the needs and wants of society. Is rooted in the problem of scarcity.

Answer 11

Economic Institutions

Question 12

4 market structures

Answer 12

-Perfect competition
-Monopoly
-Oligopoly
-Monopolistic competition

Question 13

A market system characterized by many different buyers and sellers

Answer 13

Perfect competition

Question 14

Is the exact opposite of perfect competition. There is only ONE produceer of a prticular good or service, and generally no reasonable substitute.

Answer 14

Monopoly

Question 15

Similar to monopoly, the primary difference is having a handful of producers instead of one.

Answer 15

Oligopoly

Question 16

Is a type of market system combining elements of monopoly and perfect competition.

Answer 16

Monopolistic competition

Question 17

Is an institution consisting of a set of rules for governance.

Answer 17

The state

Question 18

Private ownership means of Production. Individuals are free to invest their moneybto any business endeavor they wish, to purchase goofs and hire labor in order to develop thei private enterprises.

Answer 18

Capitalism

Question 19

The State controls all or most of the means of production.

Answer 19

Socialism

Question 20

General welfare of the citizens is a basic duty and the ultimate goal for a well ran politics and governance state.

Answer 20

Welfare state

Question 21

Adler (1963) says economic welfare can be promoted in 2 ways:

Answer 21

Widest possible diffusion of ownership of income producing property.

Widest possible diffusion of ownership of the economic equivalents of income.