Economics Unit 3 Study Guide Answers – Flashcards

wage and quantity supplied determined by supply and demand. No one has market power. Firm has horizontal supply curve =Rwhich is the same as MRC. Wage=MRP

The market structure that exists when there are many small businesses selling one standardized product.

a market structure in which many companies sell products that are similar but not identical

the market structure that exists when there are very few businesses selling a product

(economics) a market in which there are many buyers but only one seller

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a market whose geographic area is so limited that a single seller can control an item's manufacture, sale, distribution, or price.

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a general and progressive increase in prices

the state of the economy declines

a long-term economic state characterized by unemployment and low prices and low levels of trade and investment

location in new York City on Wall Street where stocks are bought and sold

The second largest exchange with less stringent requirements allowing for younger, smaller companies to be listed.

a computerized data system to provide brokers with price quotations for securities traded over the counter

a measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq

an index based on the stock prices of 500 of the largest firms by market value

A steady drop in the stock market over a period of time

a period of increased stock trading and rising stock prices

individuals who would like to work but have given up looking for a job

people who say they're looking for a job but really arn't

A type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs.

unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one

unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season

unemployment directly related to swings in the business cycle

unemployment that's a result of government policies

Phase I (spring): Expansion- Production expanding, more goods produced, more jobs available, more spending, people optimistic and confident about future. Phase II (summer): Prosperity- Boom! business working at capacity, more money around, salaries increase, high demand for goods, people feel some concern about potential slowdown. Phase III (fall): Recession- people pessimistic, insecure, Inflation, profits go down, business's lay off, unemployment, less earnings- cant pay bills or mortgage, less production, reduced spending. Phase IV (winter): Recovery- Government lowers taxes and interest rates, people have more money to spend and gradually start to buy, more jobs are created, people are cautiously hopeful. Depression- Business close, very high unemployment, banks fail, people lose savings

Government produces too much money

To make money on how well a company does

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16 years or older, actively searching for job within last 4 weeks.

the percentage of the work force that is unemployed at any given date