Options for Youth – Economics Unit 3 Vocabulary – Flashcards
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Market Structure
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The extent to which competition prevails in particular markets.
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Perfect Competition
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Market situation in which there are numerous buyers and sellers, and no single buyer or seller can affect price.
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Monopoly
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Market situation in which a single supplier makes up an entire industry for a good or service with no close substitutes.
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Barriers to Entry
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Obstacles to competition that prevent others from entering a market.
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Economies of Scale
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Low production costs resulting from the large size of output.
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Patent
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Exclusive right to make, use, or sell an invention for a specified number of years.
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Copyright
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Exclusive right to sell, publish, or reproduce creative works for a specified number of years.
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Oligopoly
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Industry dominated by a few suppliers who exercise some control over price.
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Product Differentiation
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Manufacturers' use of minor differences in quality and features to try to differentiate between similar goods and services.
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Cartel
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Arrangement among groups of industrial businesses to reduce international competition by controlling the price, production, and distribution of goods.
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Monopolistic Competition
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Market situation in which a large number of sellers offer similar but slightly different products and in which each has some control over price.
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Interlocking Directorate
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A board of directors, the majority of whose members also serve as the board of directors of a competing corporation
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Antitrust Legislation
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Federal and state laws passed to prevent new monopolies form forming and to break up those that already exist.
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Merger
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The legal combination of two or more companies that become one corporation.
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Conglomerate
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Large corporation made up of smaller corporations dealing in unrelated businesses
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Deregulation
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Reduction of government regulation and control over business activity.
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Financing
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Obtaining funds or money capital for business expansion.
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Cost-Benefit Analysis
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A financial process in which a business estimates the cost of any action and compares it with the estimated benefits of that action.
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Revenues
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Total income from sales of output.
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Profits
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The amount earned after a business subtracts its cost from its revenues.
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Debt Financing
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Raising funds for a business through borrowing.
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Short-Term Financing
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Funds borrowed by a business for any period of time less than a year.
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Intermediate-Term Financing
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Funds borrowed by a business for 1-10 years.
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Long-term Financing
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Funds borrowed by a business for a period of more than 10 years or funds raised by issuing stock.
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Production
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Process of changing resources into goods that satisfy the needs and wants of individuals and businesses.
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Consumer Goods
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Goods produced for individuals and sold directly to the public to be used as they are.
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Mechanization
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Combined labor of people and machines.
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Assembly Line
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Production system in which good being produced moves on a conveyor belt past workers who perform individual tasks in assembling it.
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Division of Labor
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The breaking down of a job into small tasks performed by different workers.
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Automation
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Production process in which machines do the work and people oversee them.
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Robotics
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Sophisticated, computer-controlled, machinery that operates an assembly line.
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Marketing
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All the activities needed to generate consumer demand and to move goods and services from the producer to the consumer.
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Consumer Sovereignty
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The role of the consumer as ruler of the market when determining the types of goods and services produced.
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Utility
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The amount of satisfaction one gets from a good or service.
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Market Research
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Gathering, recording, and analyzing data about the types of goods and services that people want.
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Market Survey
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Information gathered by researchers about possible users of a product based on such characteristics as age, gender, income, education, and geographic location.
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Test-Marketing
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Offering a product for sale in a small area for a limited period of time to see how well it sells before offering it nationally.
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Price Leadership
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A practice in some industries in which the largest firm purchases its price list ahead of competitors, who then match those announced prices.
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Penetration Pricing
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Selling a new product at a low price to attract customers away from an established product.
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Promotion
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Use of advertising to inform consumers that a new or improved product or service is available and to persuade them to purchase it.
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Direct-Mail Advertising
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Type of promotion using a mailer that usually includes a letter describing the product or service and an order blank or application form.
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Product Life Cycle
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Series of stages that a product goes through from first introduction to complete withdrawal from the markets.
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Channels of Distribution
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Routes by which goods are moved from producers to consumers.
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Wholesalers
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Businesses that produce large quantities of goods from producers for resale to other businesses.
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Retailers
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Businesses that sell consumer goods directly to the public.
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E-commerce
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Business transaction conducted over the internet.
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Civilian Labor Force
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Total number of people 16 years old or older who are either employed or actively seeking work.
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Blue-Collar Workers
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Category of workers employed in crafts, manufacturing, and non-farm labor.
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White-Collar Workers
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Category of workers employed in offices, sales, or professional positions.
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Service Workers
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People who provide services directly to individuals.
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Unskilled Workers
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People whose jobs require no specialized training.
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Semiskilled Workers
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People whose jobs require some training, often using modern technology.
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Skilled Workers
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People who have learned a trade or craft either through a vocational school or an apprentice to an experienced worker.
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Professional
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Highly educated individuals with college degrees and usually additional education.
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Minimum Wage Law
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Federal law that sets the lowest legal hourly wage rate that may be paid to certain types of workers.
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Labor Union
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Association of workers organized to improve wages and working conditions for its members.
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Strike
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Deliberate work stoppage by workers to force an employer to give in to their demands.
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Craft Union
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Union made up of skilled workers in a specific trade or industry.
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Industrial Union
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Union made up of all the workers in an industry regardless of job or skill level.
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Closed Shop
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Company in which only union members can be hired.
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Local Union
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Members of a union in a particular factory, company, or geographic area.
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Union Shop
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Company that requires new employees to join a union after a specific period of time.
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Agency Shop
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Companies in which employees are not required to join the union but must pay union dues.
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Right-to-Work
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State laws forbidding unions from forcing workers to join and pay union dues.
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Collective Bargaining
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Process by which unions and employers negotiate the conditions of employment.
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Cost-of-Living Adjustment (COLA)
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Provision calling for wage increase each year if the general level of price rises.
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Mediation
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A neutral person tries to get both sides to reach an agreement during negotiations.
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Arbitration
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Union and management submit the issues they cannot agree on to a third party for final decision.
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Picketing
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Action of strikers who walk in front of a workplace carrying signs that state their disagreement with the company.
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Boycott
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Economic pressure exerted by unions urging the public not to purchase the goods or services produced by a company.
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Lockout
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Situation that occurs when management prevents workers from returning to work until they agree to a new contract.
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Injunction
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Court order preventing some activity
