Economics, Chapter 8- Pintar

Front 1

Competition

Back 1

Consumers benefit.
a. lower prices
b. more choices
c. better quality

Front 2

Market Structure
(4 types)

Back 2

1. perfect competition
2. momopolistic competition
3. oligology
4. monopoly

Front 3

Which market structure has the most competition?

Back 3

*perfect competition

Front 4

Which market structure has the least competition?

Back 4

monopoly

Front 5

Economies of scale

Back 5

*low production cost resulting from the large size of output.

Front 6

Perfect Competition

Back 6

*exists when a market includes so many sellers of a particular good or service that each seller accounts for just a small portion of the overall market.
ex: farms selling an item.

Front 7

5 conditions of perfect competition

Back 7

1. large market
2. independence
3. nearly identical product
4. easy, entry and exit
5. easily obtainable information

Front 8

monopoly

Back 8

*single seller controls the supply of the good or service and this determines the price.

Front 9

4 characteristics of monopoly

Back 9

1. single seller
2. no substitutes
3. large barriers
4. almost complete control over price

Front 10

types of monopolies

Back 10

1. natural monopoly
2. geographic monopoly
3. Government monopoly
4. Technological monopoly

Front 11

copy right

Back 11

exclusive right to sell, publish or reproduce creative works for a specified number of years.

Front 12

Oligopoly

Back 12

*industry dominated by a few suppliers who exercise some control over price.

Front 13

5 characteristics of an oligopoly

Back 13

1. dominated by only a few sellers
2. large barriers to entry
3. identical or slightly different products
4. non price competition among the firms.
5. interdependence.

Front 14

Natural monopoly

Back 14

government grants rights to companies.

Front 15

Geographic monopoly

Back 15

often in rural areas.
example: small town.

Front 16

Government monopolies

Back 16

United States Postal Service

Front 17

Technological Monopoly

Back 17

*rights to a new invention

Front 18

Entrepreneur

Back 18

* A person who starts his own business.
*new ideas, new products and new way of doing something.

Front 19

Starting a new business

Back 19

*learn the law, regulations and tax codes.

Front 20

Basics to consider 1st to Entrepenuer

Back 20

*expenses and revenue
*adverising/marketing
*record keeping
*risk

Front 21

Types of Business Organizations

Back 21

1. Sole Proprietor
2. Unlimited Liability
3. Partnerships
4. Limited Partnership
Joint Venture
5. Limited Liability Company

Front 22

Production differentiation

Back 22

*manufacturers use of minor differences in quality and features to try and differeintiate between goods and services.

Front 23

Interdependent Behavior

Back 23

*folloow/copy what other firms are doing.
examples: dollar menu, Gm offered employee pricing then Ford then Chrysler.

Front 24

Collusion

Back 24

*secret agreement amongst competitors in an oligopoly.
*Illegal to do.

Front 25

Cartel

Back 25

*arrangement among different businesses to control and supply involving industries in different countries outside the U.S.
example: oil (opec)

Front 26

Monopolistic Competition

Back 26

1. large number of sellers offer similar but slightly different products and in which each has some control over price.

Front 27

Monopolistic Competition Charachertistics:

Back 27

1. easy entry into the market
2. non price competition
3. some control over price
4. more sellers.

Front 28

Brand Loyalty

Back 28

*gain respect and a following and you can raise at least slightly
example: Nike

Front 29

Anti-trust and Government regulation

Back 29

*what should the role be of governemnt???

Front 30

Anti-trust Laws

Back 30

*goal to encourage competiton in the economy and to prevent unfair trade practices.

Front 31

Anti-trust Legislation

Back 31

*laws written to prevent new monopolies from forming and to break up those that already exist.

Front 32

3 types of Mergers

Back 32

1. Horizontal merger
2. Vertical merger
3. Conglomerate merger

Front 33

Horizontal merger

Back 33

*between the same businesses.
example: chrysler and fiat.

Front 34

Vertical Merger

Back 34

*same industry gas stations to oil refineries to oil wells.

Front 35

Conglomerate merger

Back 35

*several unrelated businesses owned by one company.
example: johnson and johnson owns insurance, cosmetics, snacks, office supplies etc.

Front 36

Corporation

Back 36

*organization owned by many people but treated by law as though it were a person.

Front 37

Stocks

Back 37

*ownership rights to a certain portion of the future profits and assets of the company.

Front 38

Dividend

Back 38

*a portion of the profits paid out to stockholders.

Front 39

Corporation steps

Back 39

1. register the corp.
2. create articles of incorp.
3. get a corporate charter
4. sell stock

Front 40

Franchises

Back 40

*firm sells the right to use its name and sell the products.

Front 41

Franchisor

Back 41

*the firm who sells the rights.

Front 42

Franchisee

Back 42

*the person who buys the rights.

Front 43

Marketing

Back 43

*all activities needed to generate consumer demand and to move goods and services from the producer to the consumer.
*** up to 50% of the cost.

Front 44

Marketing Research

Back 44

*gathering, recording, and analysing data about the types of goods and services that people want.

Front 45

Consumer Sovereignty

Back 45

*The role of the consumer

Front 46

Production

Back 46

*the process of changing resources.

Front 47

Consumer Goods

Back 47

*Goods created for personal use.

Front 48

Capital Goods

Back 48

*goods used to make other goods.

Front 49

Production Process
(4 steps involved)

Back 49

1. planning
2. purchasing
3. quality control
4. inventory control

Front 50

Technology and Production
(5)

Back 50

1. mechanization
2. assembly line
3. division of labor
4. automation
5. robotics

Front 51

mechanization

Back 51

*cominbed labor of people and machines

Front 52

assembly line

Back 52

use of conveyor belt-individual tasks

Front 53

division of labor

Back 53

creation of interchangeable parts.

Front 54

automation

Back 54

*machines do the work and people oversee them.

Front 55

robotics

Back 55

*computer controlled machinery.

Front 56

Craft Union

Back 56

*skilled workers in a specific trade.

Front 57

Labor Unions

Back 57

*association of worker organized to improve wages and working conditions for its members

Front 58

Industrial Union

Back 58

*made up of all workers in an industry, regardless of trade.
example: UAW

Front 59

3 levels of Organization
(for unions)

Back 59

1. local
2. national
3. federation

Front 60

Rights to work laws

Back 60

* FORBID UNION SHOPS

Front 61

Collective Bargaining

Back 61

*process by which unions and employees neotiate.

Front 62

What is COLA????*

Back 62

*cost of living allowance

Front 63

mediation

Back 63

* a mediator tries to help both parties come to an agreement.

Front 64

arbitration

Back 64

*hears both sides and makes decisions. Both parties must follow the decisions.

Front 65

strike

Back 65

*employees reguse to work

Front 66

Lockout

Back 66

*employer "lock-oout" workers.

Front 67

Injunction

Back 67

*court order preventing an acitivity, must endanger the nations safety or health.