CIRCULAR FLOW
BUYS FINISHED GOODS FROM THE PRODUCT MARKET
WHAT IS THE HOUSEHOLD?
THE THREE PARTS OF THE CIRCULAR FLOW THAT ARE INVOLVED IF THE SMITH FAMILY BUYS A NEW LAPTOP COMPUTER FROM WALMART THAT WAS MADE BY DELL
WHAT IS THE HOUSEHOLD, THE PRODUCT MARKET AND THE BUSINESS?
A BUSINESS OWNED BY ONE PERSON. MOST BUSINESSES IN THE UNITED STATES ARE THIS TYPE
WHAT IS A SOLE PROPRIETORSHIP?
OWNERSHIP OF THIS REPRESENTS OWNERSHIP IN THE COMPANY. THE MORE OWNED, THE MORE OF THE COMPANY A PERSON OWNS
WHAT IS STOCK?
HAS TO ACCEPT THE STATED PRICE
WHAT IS A PRICE TAKER?
J.C. PENNEY, DILLARD'S, BELK, KOHL'S, WOULD BE AN EXAMPLE OF THIS TYPE OF MARKET STRUCTURE
WHAT IS PERFECT COMPETITION?
THE AMOUNT PRODUCERS ARE WILLING TO PRODUCE AT EVERY PRICE
WHAT IS SUPPLY?
CONSUMERS HAVE MORE MONEY TO SPEND (THIS WOULD CAUSE THE DEMAND CURVE TO SHIFT TO THE RIGHT)
WHAT CAUSES DEMAND TO INCREASE?
THE DEMAND CURVE MOVES TO THE RIGHT
WHAT SHOWS AN INCREASE IN DEMAND?
SELLS FINISHED GOODS TO THE HOUSEHOLD
WHAT IS THE PRODUCT MARKET?
THE THREE PARTS OF THE CIRCULAR FLOW DIAGRAM IF JOHN GOES TO WORK AT THE KIA FACTORY IN WESTPOINT
WHAT ARE THE HOUSEHOLD, THE FACTOR MARKET, AND THE BUSINESS?
BUSINESS MADE UP OF TWO OR MORE PEOPLE
WHAT IS A PARTNERSHIP?
THIS TYPE OF BUSINESS ORGANIZATION IS THE EASIEST TO ORGANIZE
WHAT IS A SOLE PROPRIETORSHIP?
BECAUSE IT FACES NO COMPETITION, A MONOPOLY SETS THE PRICES IT WANTS TO
WHAT IS A PRICE SETTER?
MARKET STRUCTURE THAT PRODUCES SIMILAR BUT NOT IDENTICAL PRODUCTS. CHARACTERIZED BY PRODUCT DIFFERENTIATION AND BRANDING
WHAT IS MONOPOLISTIC COMPETITION?
THE AMOUNT PEOPLE ARE WILLING TO BUY AT EVERY PRICE?
WHAT IS DEMAND?
APPLE ANNOUNCES THE RELEASE OF THE I-PHONE XI IN TWO WEEKS (HOW WOULD THIS AFFECT DEMAND FOR I-PHONE X)
WHAT WOULD CAUSE A DECREASE IN DEMAND FOR THE I-PHONE X?
THE SUPPLY CURVE MOVES TO THE LEFT
WHAT SHOWS A DECREASE IN SUPPLY?
MAKES FINISHED GOODS TO BE SOLD TO THE PRODUCT MARKET AND BUYS PRODUCTIVE RESOURCES FROM THE FACTOR MARKET
WHAT IS THE BUSINESS?
THE PARTS OF THE CIRCULAR FLOW INVOLVED IF THE JOE IS HIRED BY THE UNITED STATES POSTAL SERVICE
WHAT IS THE GOVERNMENT AND THE FACTOR MARKET?
BUSINESS THAT SELLS STOCK TO RAISE MONEY. A COMPANY OR GROUP OF PEOPLE AUTHORIZED TO ACT AS A SINGLE ENTITY AND RECOGNIZED AS SUCH IN LAW. THE MOST DIFFICULT TYPE OF BUSINESS ORGANIZATION TO START
WHAT IS A CORPORATION?
JOHN IS A DIVORCE LAWYER, SUSAN IS A TRIAL LAWYER, DENNIS IS A TAX ATTORNEY, AND LUKE IS A PERSONAL INJURY ATTORNEY. TO TAKE ADVANTAGE OF THEIR SKILLS AND BRING IN MORE CLIENTS, THEY DECIDE TO FORM THIS TYPE OF BUSINESS
WHAT IS A PERTNERSHIP?
MADE UP OF A LOT OF FIRMS, EACH SELLS IDENTICAL ITEMS, THE MARKET STRUCTURE WITH THE MOST COMPETITION
WHAT IS PERFECT COMPETITION?
TGIFRIDAYS, APPLEBY'S, RUBY TUESDAY, AND CHILIS ARE EXAMPLES OF THIS TYPE OF MARKET STRUCTURE
WHAT IS MONOPOLISTIC COMPETITION?
AS PRICE GOES UP, SUPPLY GOES UP (AND VICE VERSA)
WHAT IS THE LAW OF SUPPLY?
THE PRICE OF GOLF CLUB MEMBERSHIPS INCREASES (HOW WOULD THIS AFFECT THE DEMAND FOR GOLF CLUBS)
WHAT WOULD CAUSE A DECREASE IN DEMAND FOR GOLF CLUBS?
THE PEANUT CROP IS DESTROYED BY BOLL WEEVILS (SUPPLY CURVE FOR PEANUT BUTTER)
WHAT WOULD CAUSE THE SUPPLY CURVE FOR PEANUT BUTTER TO MOVE TO THE LEFT
BUYS PRODUCTIVE RESOURCES FROM THE HOUSEHOLD AND SELLS PRODUCTIVE RESOURCES TO THE BUSINESSES
WHAT IS THE FACTOR MARKET?
THE TWO PARTS OF THE CIRCULAR FLOW INVOLVED IF THE GOVERNMENT BUYS PANTS AND SHIRTS FROM TRU SPEC (A UNIFORM COMPANY)
THE GOVERNMENT AND THE PRODUCT MARKET
UNLIMITED LIABILITY AND LIMITED LIFE ARE DISADVANTAGES OF THESE TWO TYPES OF BUSINESS ORGANIZATIONS
WHAT IS A SOLE PROPRIETORSHIP AND A PARTNERSHIP?
JOAN IS A FIFTH GRADE ELEMENTARY WCHOOL TEACHER. SHE DECIDES TO OPEN A BUSINESS. SHE OPENS A HOTDOG STAND IN A PARK NEAR HER SCHOOL. SHE FILES FOR AND RECEIVES THE NECESSARY PERMITS. SHE OPENS HER BUSINESS THE FIRST DAY OF SUMMER BREAK. SHE OPENED A _______________
WHAT IS A SOLE PROPRIETORSHIP?
KEEPS PRICES LOW AND QUALITY HIGH
WHAT ARE THE ADVANTAGES OF COMPETITION?
THE SOFT DRINK INDUSTRY-TWO MAJOR PRODUCERS COKE AND PEPSI-WOULD BE AN EXAMPLE OF THIS TYPE OF MARKET STRUCTURE
WHAT IS MONOPOLISTIC COMPETITION?
AS PRICE GOES UP, DEMAND GOES DOWN (AND VICE VERSA)
WHAT IS THE LAW OF DEMAND?
THE PRICE OF BEFF INCREASES (HOW WOULD THIS AFFECT THE DEMAND FOR PORK)
WHAT WOULD CAUSE AN INCREASE IN DEMAND FOR PORK?
CHRISTMAS TREES, WRAPPING PAPER, GIFT BAGS, BOWS, AND CHRISTMAS DECORATIONS (SUPPLY CURVE FOR CHRISTMAS STUFF) THE DAY AFTER CHRISTMAS
WHAT WOULD CAUSE THE SUPPLY CURVE FOR CHRISTMAS SUPPLIES TO SHIFT TO THE LEFT?
BUYS FINISHED GOODS FROM THE PRODUCT MARKET, PRODUCTIVE RESOURCES FROM THE FACTOR MARKET, PROVIDES PUBLIC GOODS AND TRANSFER PAYMENTS TO THE HOUSEHOLDS AND PUBLIC GOODS AND SUBSIDIES TO BUSINESSES
WHAT IS THE GOVERNMENT?
GOES FROM THE BUSINESS TO THE PRODUCT MARKET TO THE HOUSEHOLD
WHAT ARE FINSIHED GOODS?
THIS BUSINESS ORGANIZATION ACCOUNTS FOR THE MAJORITY OF SALES IN THE UNITED STATES
WHAT IS A CORPORATION?
THIS TYPE OF BUSINESS ORGANIZATION ALLOWS MULTIPLE PEOPLE TO GO IN BUSINESS WITH EACH OTHER AND TAKE ADVANTAGE OF EACH OTHER'S SKILLS IN ORDER TO MAKE MORE MONEY
WHAT IS A PARTNERSHIP?
BY THE LEVEL OF COMPETITION, FROM A LOT (PERFECT COMPETITION) TO A NONE (MONOPOLY)
HOW DO WE DISTINGUISH BETWEEN THE TYPES OF MARKET STRUCTURES?
AMERICAN CAR COMPANIES WOULD BE AN EXAMPLE OF THIS TYPE OF MARKET STRUCTURE
WHAT IS MONOPOLISTIC COMPETITION?
THE MAXIMUM PRICE THAT CAN BE CHARGED--ALWAYS OCCURS BELOW THE EQUILIBRIUM PRICE--ALWAYS RESULTS IN A SHORTAGE BECAUSE DEMAND EXCEEDS SUPPLY--RENT CONTROL IS AN EXAMPLE
WHAT IS A PRICE CEILING?
4,000 NEW SOLDIERS AND THEIR FAMILIES ARE DEPLOYED TO FT BENNING (THE IMPACT OF THIS ON DEMANDFOR SAY KRISPY KREME DOUGHNUTS)
WHAT WOULD CAUSE DEMAND FOR KRISPY KREME DOUGHNUTS TO INCREASE?
THE GOVERNMENT GIVES PEANUT FARMERS A SUBSIDY (SUPPLY CURVE FOR PEANUTS)
WHAT WOULD CAUSE THE SUPPLY CURVE FOR PEANUTS TO MOVE TO THE RIGHT?
GOES FROM THE HOUSEHOLD TO THE PRODUCT MARKET TO THE BUSINESS
WHAT IS MONEY?
GOES FROM THE HOUSEHOLD TO THE FACTOR MARKET TO THE BUSINESS
WHAT ARE PRODUCTIVE RESOURCES?
CORPORATIONS PAYS THESE TO STOCKHOLDERS IF THE CORPORATIONS MAKE A PROFIT
WHAT ARE DIVIDENDS?
WHEN A CORPORATION SELLS STOCK, IT DOES NOT HAVE TO BORROW MONEY FROM A BANK WHICH OT WOULD HAVE TO PAY BACK LATER
WHAT IS THE ADVANTAGE OF SELLING STOCK?
ONE PRODUCER OF A GOOD OR SERVICE IN AN INDUSTRY
WHAT IS A MONOPOLY?
CHAIN GROCERY STORES (PUBLIX, WINN DIXIE, PUBLIX, ETC,) AND BIG DEPARTMENT STORES (KOHL.S, BELK. DILLARD'S. J C PENNEY) WOULD BE EXAMPLES OF THIS TYPE OF MARKET STRUCTURE
WHAT IS PERFECT COMPETITION?
THE MINIMUM PRICE THAT CAN BE CHARGED--ALWAYS ABOVE THE EQUILIBRIUM PRICE--ALWAYS RESULTS IN A SURPLUS BECAUSE SUPPLY EXCEEDS DEMAND--DRIVES PRICES DOWN--MINIMUM WAGE IS AN EXAMPLE
WHAT IS A PRICE FLOOR?
NIKE'S NEW AD PROMOTES THE ADVANTAGES OF ITS NEW ATHLETIC SHOES
WHAT WOULD CAUSE AN INCREASE IN DEMAND FOR NIKE SHOES?
THE GOVERNMENT CHARGES PIG FARMERS A TAX (SUPPLY CURVE FOR PIGS)
WHAT WOULD CAUSE THE SUPPLY CURVE FOR PIGS TO MOVE TO THE LEFT?
GOES FROM THE BUSINESS TO THE FACTOR MARKET TO THE HOUSEHOLD
WHAT IS MONEY?
SHOWS THE RELATIONSHIP BETWEEN ALL PARTIES INVOLVED IN THE ECONOMY--INDIVIDUALS, BUSINESSES, AND THE GOVERNMENT
WHAT IS THE CIRCULAR FLOW?
UNLIMITED LIFE AND LIMITED LIABILITY ARE TWO ADVANTAGES OF THIS TYPE OF BUSINESS ORGANIZATION
WHAT IS A CORPORATION?
DOUBLE TAXATION-DIVIDENDS BEING TAXED AND THE BUSINESS PAYING INCOME TAX- IS A DISADVANTAGE OF THIS TYPE OF BUSINESS ORGANIZATION
WHAT IS A CORPORATION?
AN INDUSTRY WITH A FEW PRODUCERS
WHAT IS AN OLIGOPOLY?
BURGER KING, WENDY'S, MCDONALD'S, AND HARDEE'S
WHAT IS MONOPOLISTIC COMPETITION?
THE POINT WHERE A SUPPLY CURVE AND A DEMAND CURVE MEET--EVERYTHING THAT HAS BEEN MADE HAS BEEN BOUGHT--THERE IS NOT A SURPLUS OR A SHORTAGE
WHAT IS THE EQUILIBRIUM PRICE?
PEOPLE GROW TIRED OF FIDGET SPINNERS (THINK ABOUT THE DEMAND FOR FIDGET SPINNERS)
WHAT WOULD CAUSE A DECREASE IN DEMAND?
THE PRICE OF COTTON INCREASES (THE SUPPLY CURVE FOR COTTON TEE SHIRTS)
WHAT WOULD CAUSE THE SUPPLY CURVE FOR COTTON TEE SHIRTS TO SHIFT TO THE LEFT?