unit 7
what is the defention of Competition and Market Structures?
Market structure refers to the way that various industries are classified and differentiated in accordance with their degree and nature of competition for products and services.
what is wages?
payment made by an employer to an employee for work done in a specific period of time.
what is taxation?
the imposition of compulsory levies on individuals or entities by governments.
what is government spending?
money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, and defens
what is financial markets
any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives.
what is Perfect Competition?
1. large number of buyers and sellers
2. identical products
3. buyer and seller acts independently
4. well-informed
5. free to enter/ exit the market whenever desired
what are the Types of Unions?
1. Craft Union or Trade Union: for specific skills
(Cigar Makers Union was one of the first)
2. Industrial Union: for workers in same industry, regardless of job
(automobile industry unions)
what is the types of Taxation?
1. sin tax
2. individual income tax
3. sales tax
4. progressive tax
5. regressive tax
6. parcel tax
what is national debt?
the amount of money the federal government has borrowed to cover the outstanding balance of expenses incurred over time.
what are the 4 types of financial market
currency markets, money markets, derivative markets, and capital markets
what is Monopoly?
an enterprise that is the only seller of a good or service.
what are the Union Activities?
1. Strikes
2. Picket
3. boycott
what are the Two Principles of Taxation?
1. Benefit Principle of Taxation
2. Ability-to-Pay Principle
what is the Impact of National Debt?
1. Affects economy by transferring purchasing power, reducing economic
2. Transferring Purchasing Power
3. Reducing Economic Incentives
4. Crowding Out
5. Redistributing Income
what are the 2 most common types?
capital and money markets
how does Profit Maximization happen?
occurs where marginal revenue is equal to marginal cost
what are the Wages and Labor Disputes?
1. Unskilled Labor
2. Semiskilled Labor
3. grievance procedure
4. arbitration
5. injunction
what are the Three Types of Taxation?
1. Proportional Tax
2. Progressive Tax
3. Regressive Tax
what is the Impact of Government Spending?
1. Affecting Resource Allocation
2. Redistributing Income
3. Tax Burden
4. Marginal product
5. Competing with private sector
what are the 3 main markets
money, capital market and foreign exchange
what is Monopolistic Competition?
1) All conditions except for identical products exist
2. Characterized by product differentiation
what are the Wage Determination?
1. “Wage Rate”
2. Noncompeting Categories of Labor
3. Market Theory of Wage Determination
4. Theory of Negotiated Wages
5. Signaling Theory
what is the Local Government Revenue?
1. Intergovernmental Revenue
2. Property Taxes
3. Utility Taxes
4. Sale Taxes
5. Other sources of revenue
what are the Local Government Expenditures?
1. Budget approved by mayor, town council, etc.
2. Elementary and Secondary Schools
3. Utilities
4. Public Safety and Health
what is the most popular financial market
New York stock exchange