market structures
market structure
the organization of a market, based mainly on the degree of competition
macroeconomics
the branch of economics that deals with the economy as a whole, including employment, gross domestic product, inflation, economic growth, and the distribution of income.
Payroll withholding system
A system that requires an employer to automatically deduct income taxes from a workers paycheck and send them to the IRS.
pork
a line-item budge expenditure that circumvents normal budget procedures and benefits a small number of people or businesses
Financial Market
A market in which financial assets (securities) such as stocks and bonds can be purchased or sold. Funds are transferred in financial markets when one party purchases financial assets previously held by another party.
the 4 types of market structures
perfect competition, monopolistic competition, oligopoly, and monopoly
civilian labor force
men and women 16 years old and over who are either working or actively looking for a job.
sin tax
A relatively high tax designed to raise revenue and discourage consumption of a socially undesirable product.
public sector
that part of the economy made up of local, state, and federal governments
Role of Financial Markets
Accommodating Investment Needs: Financial institutions serve as intermediaries to connect the investment management activity with the corporate finance activity.
oligopoly
op 4 producers produce over 60%; a market structure in which a few firms dominate the market and produce similar or identical goods
craft union
a labor union, an association of skilled workers who perform the same kind of work.
property tax
Tax on tangible and intangible possessions such as real estate, buildings, furniture, stocks, bonds, and bank accounts.
private sector
that part of the economy made up of private individuals and businesses
Surplus Units
Participants who receive more money than they spend, such as investors
perfect competition
oligopolyop 4 producers produce over 60%; a market structure in which a few firms dominate the market and produce similar or identical goodsperfect competitionmost compeititive; a market structure in which many producers supply an identical product and no single producer can influence its price; in such a market, prices are set by supply and demand
trade union
craft uniona labor union, an association of skilled workers who perform the same kind of work.trade uniona labor union, an association of skilled workers who perform the same kind of work.
individual income tax
Tax levied on the wages, salaries, and other income of individuals.
transfer payment
payment for which the government receives neither goods nor service in return government simply receives the tax revenue and passes it on to individuals
Deficit Units
Participants who spend more money than they receive, such as borrowers
monopolistic competition
perfect competitionmost compeititive; a market structure in which many producers supply an identical product and no single producer can influence its price; in such a market, prices are set by supply and demandmonopolistic competitiona market structure in which many producers supply similar but varied products
industrial union
an association of all workers in the same industry, regardless of the job each worker performs.
indexing
adjustment of tax brackets to offset the effects of inflation.
Federal government spending increased dramatically starting when?
Great Depression
because the federal government took a larger role in everyday economic affairs, and
because Franklin D. Roosevelt's New Deal
Securities
Represent a claim on the issuers