Circular Flow
What are the two entities involved in the Circular Flow Model?
Households and Businesses
Your local Chick-Fil-A, McDonald's, and Domino's are all examples of this type of business organization.
Franchise
Since there are 14 car companies that control the vast majority of car brands in the US, the car industry is known as an...
Oligopoly
Most economies in the world today are...
Mixed Economies
What do Firms produce and sell in product markets?
Goods and Services
This type of business organization involves an individual owner (or a married couple).
Sole Proprietorship
The NBA, the only professional basketball league in the United States, is an example of a...
Monopoly
When people give their labor to a firm, what do they get in return?
Money-Income Payments
Transferring ownership of a corporation is done through the sale of ___________.
Stock (or Shares)
How many firms are there in perfect (pure) competition?
MANY (lots, tons, etc)
Who answers the economic questions in a Command Economy?
The government
People act as both ____________ AND ____________ in the Circular Flow Model
Producers, Consumers
Mr. Snyder is good with numbers. He decides to enter a partnership with his brother Scott since he is so good with people and now Mr. Snyder doesn't have to talk to anyone. This decision allows Mr. Snyder and Scott to ____________.
specialize
Something that prevents you from opening a business and entering into a market is known as a...
Barrier to Entry
In mixed economies, who decides what to produce?
Businesses (based on consumer preferences and governmental regulations)
What entity also participates in the more complex (and more accurate) version of the Circular Flow Model? HINT - Think about Mr. Snyder!
The Government
The area in which a franchisee is allowed to operate (determined by the franchisor) is known as?
Territory
What type of competition do businesses engage in when we see a market that has monopolistic competition?
Non-Price Competition (heavy advertising, better locations, surroundings, better hours)
Where might you find an example of a Traditional Economy today?
Amazon Rainforest, northern edges of Canada, Aboriginals in Australia, etc.