Term
| perfect (pure) competition |
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Definition
| compete to sell IDENTICAL products |
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Term
| example of perfect competition |
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Definition
| farmers produce is close to being identical |
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Term
| 4 conditions for perfect competition |
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Definition
1. many buyers&sellers act independently
2. sellers offer identical products
3. buyers are well informed
4. sellers can enter/exit market easily |
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Term
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Definition
| sell SIMILAR products to compete |
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Term
| example of monopolistic competition |
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Definition
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Term
| product differentiation & which competition it is present in |
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Definition
| in monopolistic competition -- sellers compete by pointing out & MAGNIFYING small differences b/w their product & their competitors |
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Term
| example of product differentiation |
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Definition
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Term
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Definition
| exist when there are only a FEW major competitors |
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Definition
| airlines, car manufacturers, soft drinks |
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Term
| 3 conditions for oligopoly |
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Definition
1. a FEW large sellers
2. sellers offer similar products
3. other sellers CANNOT easily enter/exit market |
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Term
| tactics of monopolistic competitors & oligopolies |
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Definition
*non-price competition
*price leadership
*price war
*collusion
*cartel |
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Term
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Definition
| competing in ways NOT involving $ -- advertising, giveaways, store hours, customer service |
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Term
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Definition
| a seller taking the lead by setting price of product |
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Term
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Definition
| sellers aggressively undercut each other in an attempt to gain market share |
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Term
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Definition
| ILLEGAL -- sellers SECRETLY agree to set production levels or fix prices for their products |
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Term
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Definition
| LEGAL -- companies openly organize a system of price fixing & market sharing |
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Term
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Definition
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Term
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Definition
| 1 seller controls all aspects of G/S |
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Term
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Definition
| another name for monopoly |
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Term
| 3 conditions for monopoly |
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Definition
1. a single seller
2. no close substitutes
3. other sellers CANNOT easily enter/exit |
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Term
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Definition
| market that runs most efficiently when 1 large firm produces all output |
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Term
| example of natural monopoly |
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Definition
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Term
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Definition
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Term
| example of government monopoly |
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Definition
| defense contracts are awarded to 1 FIRM -- preserves National Security |
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Term
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Definition
| ex. copyright protections & patents |
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Term
| how do we reward innovation |
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Definition
| through technology monopolies |
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Term
| barriers to entry in the market (2) |
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Definition
1. start-up costs
2. technology (may requre a high degree of tech know-how) |
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Term
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Definition
| factors that cause a producer's average cost per unit to fall as its output rises |
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Term
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Definition
| mass-produced sneakers vs hand-made italian shoes |
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Term
| oldest simplest most common type of business organization |
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Definition
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Term
| which business organization is usualloy seen in professional fields |
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Definition
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Term
| which business organizationhas longetivity |
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Definition
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Term
| which business organization has an advantage of specialization (diff duties) |
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Definition
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Term
| which business organization has tax shelter |
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Definition
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Term
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Definition
| a group of owners aka stockholders share in the profits & losses |
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Term
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Definition
| a member of a group of owners of a corporation |
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Term
| which business organization is heavily regulated by gov |
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Definition
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Term
| which business organization has double taxation |
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Definition
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Term
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Definition
| when 1 company joins/absorbs another |
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Term
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Definition
| when 2 companies doing same thing join together |
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Term
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Definition
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Term
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Definition
| when companies that produce diff PHASES of a product come together |
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Term
| name of man who started vertical merger |
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Definition
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Term
| what did carnegie do with the ships |
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Definition
| controlled steam industry with shipping lines, refineries, + iron mines |
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Term
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Definition
| biz owned separately but have same name (ex mcd) |
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Term
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Definition
| owned collectively by members |
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Term
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Definition
| biz w/ goals other than profits (ex good will) |
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Term
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Definition
| people age 16+ who are employed or ACTIVELY looking for work |
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Term
| 7 things you need to think about with the labor force |
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Definition
1. wages
2. skills
3. working conditions
4. location
5. intrinsic rewards (good feeling)
6. market trends
7. fringe benefits |
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Definition
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Definition
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Definition
| HOURLY; little supervision, specialized abilities |
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Term
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Definition
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Term
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Definition
| education increases productivity = higher wage |
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Term
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Definition
| completion of colege indicates endurance |
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Term
| 4 types of wage discrimination for women |
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Definition
1. "women's work"
2. human capital
3. career paths
4. glass ceiling |
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Term
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Definition
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Term
| what happens to QD & prices when min wage increases |
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Definition
| QD decreases; prices increase |
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Term
| how often is unemployment rate measured |
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Definition
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Term
| unemployment in a measure of _______ |
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Definition
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Term
| peak of unemployment rate |
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Definition
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Term
| which minority has highest unemployment |
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Definition
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Term
| F or M have higher unemployment |
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Definition
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Term
| who measures unemployment |
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Definition
| bureau of labor statistics |
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Term
| what is the numerical definition of unemployment rate |
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Definition
| % of work force that is unemployed |
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Term
| fraction for unemployment |
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Definition
| # of unemployed / labor force |
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Term
| 3 conditions for employed |
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Definition
1. worked for pay for 1+ hours this week
2. worked w/o pay in a family biz for 15+ hours
3. have job but been absent due to illness etc |
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Term
| 2 conditions for unemployed |
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Definition
1. don't meet past 3 criteria
2. have been ACTIVELY looking for work during past 4 weeks |
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Term
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Definition
| frictional, structural, seasonal, cylical |
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Term
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Definition
| results from people moving between jobs, and new workers entering the labour force |
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Term
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Definition
*workers skills do not match jobs available
*caused by change in technology, consumer preferences, & outsourcing |
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Term
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Definition
| caused by economic slowdowns related to seasonal variations |
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Term
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Definition
| results from economic DOWNTURNS in the biz cycle |
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Term
| unemployment rate during great depression |
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Definition
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Term
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Definition
1. full employment
2. underemployment
3. discouraged workers |
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Term
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Definition
| no cyclical unemp exist (but other categories do) |
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Term
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Definition
| working @ a job which you are overqualified |
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Term
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Definition
| have given up looking & do not appear in uemployment rate |
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