Role of gov. In economy
What's one way the government manages the economy?
The fiscal and monetary policy and money supply
What's a monopoly?
is a market structure with one business that has complete control of a market’s entire supply of goods or services
What does GDP stand for?
Gross Domestic Product
What's a way the gov. provides public goods and services?
Public education, maintenance of roads, police, and fire protection
What's an oligopoly?
is a market structure with a small number of businesses selling the same or similar products
What's business spending?
All purchases made for capital goods and construction
What's one way the gov. provides a legal framework?
All levels of gov. make and enforce laws
What's Monopolistic competition?
is a large number of businesses selling similar, but not the same, products and at different prices
What's government spending?
Spending by national, state, and local governments
What's one-way gov. promotes competition?
Antitrust laws, Price fixing,and Collusion
What's Perfect competition
is characterized by a large number of businesses selling the same product at the same prices
What are net exports?
Country’s exports minus imports
What's one-way gov. Corrects for externalities
Government will fine or tax industries if they violate regulations on emissions of fumes
What's price competition?
is characterized by a large number of businesses selling the same product at the same prices
What's consumer spending?
Everything people buy for personal use