Competition and Monopolies
Name on barrier to entry that new businesses might face when starting.
(obstacle that makes it difficult for businesses to start up)
-high startup costs
-complex technologies
-government regulations
What is a sole proprietorship?
A business owned and managed by a single person.(you are your own boss)
What people are considered in the unemployment percentage?
-people who do not have a job but are actively looking for work in the last 4 weeks.
-people who temporarily or seasonally laid off.
In the 50/30/20 rule, what percentage of your paycheck goes towards...
Needs:
Wants:
Savings:
Needs:50
Wants:30
Savings:20
How are bear and bull markets different?
Bear: stock prices begin to fall and manyh people sell their stocks
Bull: stock prices are rising and many people begin to buy stocks.
List 2 forms of non price competition
-physical characteristics
-location
-service level
-Advertisment
What is a partnership?
a business organization owned by two or more people who agree on a specific division of responsibilities and profits.
Name the 3 requirements that are used to consider people employed.
-worked one paid hour in the last week
-worked 15 unpaid hours at a family business
-held employment but did not work due to sickness, vacation, or bad weather.
How do banks make money?
-interest rates on loans and mortgages
-investing saving accounts into safe businesses
Describe the terms liquidity and return.
Liquidity refers to how easily an asset can be converted into cash without affecting its price.
Return is the gain or loss made on an investment relative to its cost, usually expressed as a percentage.
What is a Monopoly?
A single firm that controls an entire industry and can control price and output of certain goods.
What is a franchise?
A contract issued by a local authority that gives a single firm the right to sell its goods within an exclusive market.
a semi-independent business that pays fees to a parent company. In return the business is granted exclusive rights to sell the parent company’s products.
Name one way the labor force is changing today.
-temp work
-advanced machinery
-AI
-guest work
Describe one purpose of the Federal Reserve System.
-acting as the government's banker
-issuing currency for the government
-serving and regulating banks
-clearing checks
-acting as a lender of last result
Difference between a hedge fund and a mutual fund?
-a mutual fund pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets. a fairly safe option.
-a hedge fund is a private investment organization that employs risky strategies that often make huge profits for investors. these investors are generally wealthy and are usually very knowledgeable about investing.
What is pure competition?
A market structure where many firms sell very similar products at similar prices, no company has an influence over the price.
What is a corporation?
a firm owned by individual stockholders, each stockholder has a limited liability for the firm's debts.
Name 2 of the 3 uses of money.
-money as a median of exchange
-money as a use of account
-money as a stored value
What is the difference from the DOW Jones and the S&P 500.
DOW Jones: Tracks 30 well known stocks to give a view of overall stock market performance.
S&P: Tracks 500 different stocks to give a broader view of overall stock market performance.
When two or more firms competing in the same market with the same good or service join together… This happens in attempt to get rid of rival companies and increase market share.
What is the difference between the New York Stock Exchange and the NASDAQ?
NYSE: Handles stock and bond exchanges from top companies in the U.S. and has a physical trading floor
NASDAQ: Created to regulate over the counter trading, handles more trades on average than any other American market, and has no physical trading floor