Roles of Government Pt. 2
What does non-rival mean?
that one person's using it doesn't prevent someone else from using it.
Where on a graph can you find equilibrium?
Where quantity demanded and quantity supplied meet.
Which structure is characterized by 1 firm selling a unique product?
monopolies
Which business organization(s) are easy to start, have unlimited liability, single taxation, and can end easily?
Partnerships and Sole Proprietorships.
How do buyers and sellers help determine equilibrium price when the price of an item is too low?
Buyers- buy as much of the item as they can; sellers- notice this and raise the price.
What does non-excludable mean?
What are the two types of price controls?
Price floors and Price ceilings
What does product differentiation mean and what kind of differentiation is there in a monopolistic competition?
**DAILY DOUBLE**
That the business gets taxed and the people who own stock get taxed.
What does the law of demand state? Supply?
As price goes up, demand goes down// As price goes up, supply goes up.
What is the difference between positive and negative externalities?
Positive externalities is when a third party benefits; negative is when a third party is harmed.
How are price ceilings bad for the economy?
The price is too low, so consumers demand more than producers supply and it leads to a shortage.
Which market structure is the most competitive?
Pure (Perfect) Competition
What is the specially elected decision-making group called in a corporation?
board of directors
Which shift:
"A video game company began sending out their games in paper sleeves because of an increase in the prices of plastic."
Change in cost of productive resources
**DAILY DOUBLE**
Whenever the private sector cannot.
How are price floors bad for the economy?
Prices are too high, so producers supply more than consumers want and it leads to a surplus
Oligopoly
What does unlimited liability--which sole proprietorships and partnerships have--mean?
that the owners are responsible for ALL legal responsibilities and debts.
How does investment in education, job training, and health lead to higher standards of living?
Education- gets you a better job
job training- job retention
health- live longer
How do anti-trust laws help to prevent market power?
By limiting the amount of power that a monopoly has in the market.
What is another name for equilibrium?
Market Clearing Price
Why must different businesses participate in non-price competition?
What is the document that corporations have to fill out and submit to the government in order to become a corporation?
A corporate charter
What is Mr. B's wife's name?
Rebecca