Market Structures
what is a Market Structure?
market where a large number of well-informed and independent buyers and sellers exchange identical products
What's unskilled labor?
Jobs were it requires no special skills
What is Tax?
It is how the government gets there revenue
What is a Fedral buget?
annual plan outlining proposed revenues and expenditures for the coming year
What are 4 types of Financial Markets?
currency markets, money markets, derivative markets, and capital markets
Perfect Competition is when?
large number of buyers and sellers, identical products and buyer and seller acts independently
What is Minimum wage?
The amount of money that mostly everyone is getting paid
What is Sin Tax
relatively high tax designed to raise revenue and reduce consumption of socially undesirable products
What does social security do for the government?
largest expenditure in the federal government
What is an example of a financial market?
The Stock Market
When does Profit Maximization happen?
occurs where marginal revenue is equal to marginal cost
What do Unoins do?
Boycott, strikes, Picket
What is sales tax?
simple tax levied on most consumer purchases
Why is Medicare so expensive?
Cost is going up as people are living longer
What are the 2 most common types of financial markets?
Capital Markets and Money Market
What is Imperfect Competition?
When something includes Monopolistic Competition, Oligopoly, Monopoly
What is the attitude courts have against the Unions?
They do not trust them
What is the IRS?
branch of the treasury department in charge of collecting taxes
What are the state expenditures?
Public Welfare (welfare institutions), Insurance Trust and Retirement (STRS, PERS), Higher Education
What are the most popular financial markets?
New York Stock Exchange
What is Market Failure
Occurs when one of the several conditions necessary for competitive markets don’t exist
Why do women get paid less?
Because they have a bigger gap to compete against then males
What is VAT?
value-added tax (VAT) = tax placed on the value that manufacturers add at each stage of product
What is the impact of national debt?
Affects the economy by transferring purchasing power, reducing economic and incentives, causing a crowding-out effect, and redistributing income
Who runs the financial markets?
the Federal Reserve Board(FRB)