Market Structures
What is a Perfect Competition?
A market where large number of well-informed and independent buyers and sellers exchange identical products
Unskilled Labor
workers whose jobs do not require special training or skills
sin tax
relatively high tax designed to raise revenue and reduce consumption of socially undesirable products
Pork
a line-item budget expenditure that circumvents normal budget procedures and benefits a small number of people or businesses
Budget Process
differs from state to state. State decision in format
What is a Nonprice competition?
To use advertising, giveaways, or other promotions to convince buyers one product is superior to another
Semiskilled Labor
workers who operate machines that require a minimum amount of training.
individual income tax
a complex tax on people’s earnings.
Public Sector
part of the economy made up of federal, state, and local governments
Intergovernmental Expenditures
transfers from one level of government to the next location
What is an Oligopoly?
market structure where a few very large sellers dominate
grievance procedure
a provision in a labor contract for resolving issues that may come up later
sales tax
simple tax levied on most consumer purchases
Private Sector
part of the economy made up of private individuals and privately owned businesses
Fiscal Year
a 12-month financial planning period that may or may not coincide with the calendar year
What is Collusion?
A formal agreement to set prices or behave in cooperative way
arbitration
a process in which both sides agree to place their differences before a third party whose decision will be accepted as final and binding
progressive tax
tax that imposes a higher percentage rate on persons with higher incomes than lower
Transfer Payment
payment for which the government receives neither goods nor services in return
Balanced Budget Amendment
constitutional provision requiring that annual spending not exceed revenue
What are Economies of Scale?
A situation in which average cost of production falls as a firm
injunction
a court order not to act
regressive tax
tax that imposes a higher rate on persons with lower incomes than higher
Distribution of Income
way in which income is allocated among families, individuals, or other designated groups in the economy
Intergovernmental Expenditures
largest category of state spending