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| Laws aimed at eliminating collusion and promoting competition among firms. |
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| An agreement among firms to charge the same price or otherwise not to compete. |
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| A government granted exclusive right to produce and sell a creation. |
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| A merger between firms in the same industry.(i.e.AT&T & Verizon) |
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| The ability of a firm to charge a price greater than marginal cost. |
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| A firm that is the only seller of a good or service that does not have a close substitute. |
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| A situation in which economies of scale are so large that one firm can supply the entire market at a lower average cost than can two or more firms. |
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| The situation where usefulness of a product increases with the number of consumers who use it. |
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| The exclusive right to a product for a period of 20 years from the date the product is invented. |
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| A designation by the government that a firm is the only legal provider of a good or service. |
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| A merger between firms at different stages of producing a good. |
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| Alternating Periods of economic expansion and economic recession. |
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| Spending by households on goods and services, not including spending on new houses. |
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| The ability of an economy to produce increasing quantities of goods and services. |
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| The period when total production and total employment are increasing. |
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| A good or service purchased by a final user. |
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Definition
| Spending by federal, state, and local government on goods and services. |
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| The market value of all final goods and services produced in a country during a period of time. Usually one year. |
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Term
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Definition
| The percentage increase in price level from one year to the next. |
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Term
| Intermediate Good or Service |
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Definition
| An good or service that is an input into another good or service. |
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| Spending by firms on new factories, office buildings, machinery, and additions to inventories, and spending by households on new houses. |
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| The study of the economy as a whole. |
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| The value of final goods and services evaluated at current year prices. |
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| A measure of the average prices of goods and services in an economy. |
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Term
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| The value of final goods and services evaluated at base year prices. |
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Definition
| The period of a business cycle during which total production and total employment are decreasing. |
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Term
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Definition
| Payments by the government to individuals for which the government does not receive a new good or service in return. |
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| Buying and selling of goods and services that is concealed from the government to avoid taxes or because of illegality. |
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Definition
| The market value a firm adds to a product. |
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Definition
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Term
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Definition
Government blocks entry of more than one firm into a market.
One firm has a necessary key resource.
There are important network externalities in supplying the good or service.
Economies of scale cause a natural monopoly. |
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Term
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Definition
| Where Mr=Mc. Follow up to the demand curve to find price. |
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Term
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Definition
Post merger HHI below 1000-Not concentrated, mergers not challenged.
Post merger HHI between 1000 and 1800-moderately concentrated. Mergers that raise the HHI by more than 100 may be challenged.
Post Merger HHI above 1800- Highly concentrated. Increase by less than 50, no challenge. 50-100 may be challenged. Over 100 will be challenged. |
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Term
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Definition
| Square all numbers then add the squares. |
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Term
| Shortcomings of GDP as a measure of well being |
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Definition
Value of leisure is not included in the GDP.
GDP is not adjusted for pollution.
GDP is not adjusted for changes in crime
GDP measures the size of the pie, but not how it's divided up. |
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Term
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Definition
| Sum of employed and unemployed workers in the economy. |
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Term
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| Number of unemployed over the labor force times 100 |
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| A higher than market wage that a firm pays to increase worker productivity. |
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| All items less food and energy 2.0 |
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| Consumers buy fewer products that increase most in price and more that increase less in price. |
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Definition
| The recorded price increase overstates pure inflation in some products. |
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Definition
| Newer products aren't included in the market basket & if it isn't updated frequently, price decreases aren't included in CPI |
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Term
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Definition
| Internet and outlet stores aren't included in the CPI. |
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Term
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Definition
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Term
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Definition
| Nominal IR- Inflation rate |
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Definition
| The costs to firms of changing prices. |
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Definition
| The process by which rising productivity increases the average standard of living. |
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| The quantity of goods and services that can by one worker or one hour of work. |
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| Manufactured goods that are used to produce other goods and services. |
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Definition
| The system of financial markets and financial intermediaries through which firms acquire funds from households. |
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Definition
| Markets where financial securities, such as stocks and bonds are bought and sold. |
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Definition
| Firms such as banks, mutual funds, and insurance companies, that borrow funds from savers and lend them to borrowers. |
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Definition
| The interaction of borrowers and lenders that determines the market interest rate, and the quantity of loanable funds exchanged. |
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Term
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Definition
| A decline in private expenditures as a result of an increase in government spending. |
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