Market Structures (Unit 7)
What are the four main types of market structures?
Perfect competition, monopolistic competition, oligopoly, and monopoly
What is the definition of unemployment?
The state of being jobless but actively seeking work.
What is the largest source of federal government revenue?
Individual income taxes.
What is the term for government spending that must be approved each year?
Discretionary spending.
What is a stock?
A share of ownership in a company
Perfect competition, monopolistic competition, oligopoly, and monopoly
Perfect competition
What is a labor union?
An organization that represents workers' interests to improve wages and working conditions.
What type of tax takes a larger percentage from higher incomes?
Progressive tax.
What are entitlement programs?
Government programs providing benefits to qualified individuals
What is a bond
A fixed-income investment where investors loan money to entities for interest payments
In what market structure do firms differentiate their products to stand out?
Monopolistic competition
What determines the equilibrium wage in a labor market?
The interaction of supply and demand for labor.
What are “excise taxes” commonly placed on?
Goods like alcohol, cigarettes, and gasoline.
What is the largest category of mandatory spending?
Social Security.
What is the main function of a financial market?
To facilitate the buying and selling of financial assets
Which market structure is dominated by a few large firms?
Oligopoly.
What is the difference between skilled and unskilled labor?
Skilled labor requires specialized training; unskilled labor does not.
What is a regressive tax?
A tax that takes a larger percentage from low-income earners.
What is a budget deficit?
When government spending exceeds revenue.
What is the difference between primary and secondary financial markets?
Primary markets deal with new issues; secondary markets deal with resale of securities
What is the term for a single seller in a market with no close substitutes?
Monopoly
What economic factor often causes wage differences among workers?
Human capital, discrimination, and market demand.
What is the term for taxes placed on imports?
Tariffs.
What is the national debt?
The total amount of money the government owes
What is diversification in investing?
Spreading investments across different assets to reduce risk