Market Weaknesses Flashcards
Name the 4 market weaknesses talked about in lab. Hint: M, EI, II, E
Monopoly, Economic Injustice, Imperfect Info, Externalities
Name two examples of a monopoly.
Rockefeller (oil) and Carnegie (steel)
Name one example of a solution for corrupt monopolies.
The Sherman Anti-Trust Act which allowed the government to dissolve trusts. It was the first act the federal government put in place against monopolies.
What is one example of economic injustice?
Laborers V Factory Owners
What is a solution for economic injustice?
Labor laws
What is it called when exchanges aren’t beneficial because information on the product being sold was inaccurate?
Imperfect Info
Name one example of imperfect info
The meat packing plant (dirty conditions, lots of chemicals)
What is a solution for imperfect info?
FDA regulations
What is it called when a third party is affected by the exchange of two other people?
An externality
What is an example of an externality?
A race closes the roads down for a half marathon. Everyone not running in the race or hosting it is an externality. They didn’t pay any money or receive any money, and yet, the roads were closed to them.
What is a solution for externalities?
Legal policies that protect those affected
What is the Gilded Age?
Unprecedented
accumulation of wealth
by industrialists
Who said, ““The truth is, we are all caught in
a great economic system which
is heartless.”?
Woodrow Wilson
____________________ are people who reimagined the
power of government as a force
for good in society
Progressives
Who said, “The old political formulas do not
t the present problems.”?
Woodrow Wilson
