Market Structures
whats a Perfect Competition
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
Internal Revenue Service
branch of treasury department in charge of collecting taxes
Pork
a line-item budget expenditure that circumvents normal budget procedures and benefits a small number of people or businesses
What are money markets associated with?
What are money markets associated with?
Profit Maximization
occurs where marginal revenue is equal to marginal cost
“Wage Rate”
standard amount of pay given for work performed
FICA
federal tax used to pay for Social Security and Medicare
Public Sector
part of the economy made up of federal, state, and local governments
What are capital markets associated with?
economic or "real" investments
Imperfect Competition
includes: Monopolistic Competition, Oligopoly, Monopoly exists because it lacks one or more of the conditions required for perfect competition
Market Theory of Wage Determination
states that theory of supply and demand for a worker’s skill and services determines the worker’s salary
intergovernmental revenue
funds collected from one level of government which go to another level
Transfer Payment
payment for which the government receives neither good nor services in return
What are the characteristics of a money market mutual?
Their shares are liquid assets to the owner
Monopolistic Competition
All conditions except for identical products exist
Resolving Labor Disputes
Collective Bargaining = take place between labor and management over issue as pay, working hours, health care coverage, etc.
property tax
tax on tangible and intangible possessions
Distribution of Income
way in which income is allocated among families, individuals, or other designated groups in the economy
The _____ sector of the US economy has been dominant surplus spending unit (SSU)?
consumer sector. The consumer sector is housing, so its an SSU
Oligopoly
Very few large sellers dominate the market
Mediation
Process of bringing in a neutral third party to resolve disputes mediator’s goal is to find a solution which will resolve disputes
State Government Revenue Sources
Intergovernmental Revenue = funds collected from one level and transferred to another. For example, federal government transferring tax dollars to state level for education
Public vs. Private Sectors
GDP = 1960, 24%, 1965 = 24%, 1970 = 27%, 1975 = 31%, 1980 = 30%
1985 = 33%, 1990 = 33%, 1993 = 35%, 2000 = 30%, 2005 = 31%
What is the bid price and spread?
The bid price is what someone is offering to pay, the spread is the difference between what the Security is selling for, vs what the bid is.