economics vocabulary chapter 7,8,9 – Flashcards
Unlock all answers in this set
Unlock answersquestion
binding arbitration
answer
an impartial 3rd party resolves disputes between management and unions
question
collective bargaining
answer
the way businesses and unions negotiate wages and working conditions
question
right-to-work laws
answer
make it illegal to require workers to join unions
question
market structure
answer
an economic model of competition among businesses in the same industry
question
union shop
answer
a business where workers are required to join a union within a set time period after being hired
question
perfect competition
answer
the ideal model of a market economy
question
standardized product
answer
one that consumers see as identical regardless of producer
question
price taker
answer
a business that accepts the market price determined by supply and demand
question
imperfect competition
answer
occurs in markets that have few sellers or products that aren't standardized
question
monopoly
answer
only one seller of a product that has no close substitutes
question
cartel
answer
a group that acts together to set prices and limit output
question
price maker
answer
firm that doesn't have to consider competitors when setting the prices of its products
question
barrier to entry
answer
makes it hard for a new business to enter a market
question
natural monopoly
answer
occurs when the costs of production are the lowest with only one producer
question
gov't monopoly
answer
the gov't owns and runs the business or authorizes only one producer
question
technological monopoly
answer
a firm controls a manufacturing method, invention, or type of technology
question
geographic monopoly
answer
exists when there are no other producers withing a certain region
question
economies of scale
answer
occur when the average cost of production falls as the producer grows larger
question
patent
answer
gives the inventor the exclusive property rights to that invention or process for a certain number or years
question
monopolistic competition
answer
many sellers offer similar, but not standardized, products
question
product differentiation
answer
the effort to distinguish a product from similar products
question
nonprice competition
answer
producers use factors other than low price to try to convince customers to buy their products
question
focus group
answer
moderated discussion with small groups of consumers
question
oligopoly
answer
a market structure in which only a few sellers offer a similar product
question
market share
answer
a company's % of total sales in a market
question
start-up costs
answer
the expenses that a new business faces when it enters a market
question
regulation
answer
a set of rules or laws designed to control business behavior
question
antitrust legislation
answer
defines monopolies and gives gov't the power tor control them
question
trust
answer
a group of firms combined in order tor reduce competition in an industry
question
merger
answer
the joining of 2 firms to form a single firm
question
price fixing
answer
businesses agree to set prices for competing products
question
market allocation
answer
competing businesses divide a market amongst themselves
question
Predatory pricing
answer
occurs when businesses set prices below cost for a time to drive competitors out of a market
question
Cease and desist order
answer
requires a firm to stop an unfair business practice
question
Public disclosure
answer
a policy that requires businesses to reveal product information.
question
deregulation
answer
reduces or removes gov't control of business
question
closed shop
answer
a business where an employer can hire only union members
question
independent contractor
answer
someone who sells their services on a contract basis
question
contingent employment
answer
temporary/ part-time work.
question
business organization
answer
an enterprise that produces goods or provides services to make a profit
question
sole proprietorship
answer
a business organization owned and controlled by one person
question
limited life
answer
a situation where a business closes if the owner dies, retires, or leaves for some other reason
question
unlimited liability
answer
a business owner is responsible for all the businesses loses and debts
question
partnership
answer
a business co-owned by 2+ partners who agree n how responsibilities, profits and losses of that business are divided
question
general partnership
answer
partners share management of the business and each one is liable for all business debts and losses
question
limited partnership
answer
at least one partner is not involved in the day-to-day running of business and is liable only for the funds he/she invested
question
limited liability partnership(LLP)
answer
all partners are limited partner and not responsible for the debts and other liabilities of the partners
question
corporation
answer
a business owned by stockholders, who own the rights to the company's profits but face limited liability for the company's debts and losses
question
stock
answer
share of ownership in a corporation
question
dividend
answer
a share of a corporation's profit that is paid out to stockholders
question
public company
answer
issues stock that can be publicly traded
question
private company
answer
controls who can buys or sell its stock
question
bond
answer
a contract issued by a corporation that promises to repay borrowed money, plus interest, on a fixed schedule
question
limited liability
answer
a business owner's liability for debts and losses of the business is limited
question
unlimited life
answer
means that a corporation continues to exist even after an owner dies, leaves the business, or transfers his/her ownership
question
labor union
answer
an organization of workers, that seeks to improve wages, working conditions , fringe benefits, job security, and other work-related matters for its members
question
horizontal merger
answer
the combining of 2+ companies that produce the same product or similar products
question
vertical merger
answer
combining of companies involved in different steps of producing or marketing a product
question
Conglomerate
answer
a business composed of several companies, each producing unrelated goods/service
question
multinational corporation
answer
a large corporation with branches in several counties
question
franchise
answer
a business that licenses the right to sell its products in a particular area.
question
franchisee
answer
a semi-independent business that buys the right to run a franchise
question
cooperative
answer
a business operated for the shared benefit of the owners, who also are its customers
question
nonprofit organization
answer
- a business that aims to benefit society, not to make a profit.
question
strike
answer
a work stop-page used to convince an employer to meet union demands
question
wages-
answer
payments received in return for work
question
equilibrium wage
answer
the way at which the quantity of workers demanded ='s the quantity of workers supplied; the market price for labor
question
derived demand
answer
a demand for a product or resource based on its contribution to the final product
question
wage rate
answer
the est. rate of pay for a specific job or work performed
question
human capital
answer
the knowledge and skills that enable workers to be productive
question
glass ceiling
answer
an artificial barrier to advancement faced by women and minorities
question
minimum wage
answer
the legal minimum amount that an employer must pay for one hour of work
question
civilian labor force
answer
made up of people age 16+ who are employed or actively looking for and available to do work
question
outsourcing
answer
the practice of contracting with an outside company, often in a foreign country, to provide goods/services
question
insourcing
answer
the practice of foreign companies est. operations in, and therefore bringing jobs to, the U.S.
question
telecommuting
answer
performing office work in a location other than a traditional office (Panera bread)
