Fundamental Economic
In this economic system, a private individuals and firms control all resources, and price quantity of all goods are determined by the interaction of demand and supply in unrestricted, open markets.
Free-Market Economy
What are the different types of business organizations and market structures?
Sole proprietorship, Partnerships, Coroporation
What are some forms of unemployment?
Structural, Frictional, Cyclical
What are the barriers to trade?
Tariff, Quota, Embargo, Standards, Subsidy
What are the types of financial institutions?
Bank, Credit Union, Savings and Loans, Payday Loans Company
In this economic system, the government commands all markets, determining what to produce, how to produce, and for whom to produce.
Command Economy
What is a sole proprietorship?
A business or organization that only contains one owner. The proprietor controls all the aspects of his or her business, from the factors of production to the finished product.
What occurs in a structural unemployment?
When you job have skills that no one, wants or when a company wants to hire somebody but can't find anyone who has the necessary requirements.
What are types of advantages of international trade?
Absolute and Comparative
What are the types of income taxes?
Progressive taxes, Regressive taxes, proportional taxes
This economic system contains both elements from a free market economy and a command economy.
Mixed economy
What are partnerships?
A business or organizations that divides up the risk and reward among a group of people.
What occurs in frictional unemployment?
When people don't always take the very first job they can find.
What is an absolute advantage?
A country can produce more of good than another country.
What happens to the tax rate in a progressive tax system?
The tax rate increases as the income increases.
What is the role of regulatory agencies?
To work to ensure the safety of goods and services.
What does it mean when a business is considered a corporation?
This business normally contains stockholders who purpose is to determine a board of directors and this group is responsible for guiding the company for the long run.
What occurs in cyclical unemployment?
Occurs due to the cyclical periods of growth and recession.
What is a comparative advantage?
When one country specializes in one thing and the country specialize in another.
What happens to the tax rate in a regressive tax system?
The tax rate decreases as income increases.
What type of economic system does the United States have?
Capitalism
Who does the board of directors hire to make short-term decisions for the company?
CEO (Chief Executive Officier)
To act as the nation's central bank.
What does the exchange rate measure?
The price of one nation's currency in terms of another nation's currency.
What happens to the tax rate in a proportional tax system?
The tax rate does not change with respects to changes in the income.