Market Structures (Unit 7)
Economies of Scale
“situation in which average cost of production falls as a firm gets larger”
strike
“a refusal to work until a certain demand is met”
capital gains
“profits from the sale of an asset (stocks) held for twelve months or longer”
National Debt
“total amount borrowed from investors to finance deficit spending”
Distribution of Income
“way in which income is allocated among families, individuals, or other designated groups in the economy”
Perfect Competition
“market where large number of well-informed and independent buyers and sellers exchange identical products”
boycott
“a mass refusal to buy products from targeted employers or companies”
Accelerated Depreciation
“earlier and larger depreciation charges that allowed firms to reduce federal income tax payments”
Trust Fund
“special accounts used to fund specific types of expenditures”
Transfer Payment
“payment for which the government receives neither goods nor services in return”
Nonprice competition
“to use advertising, giveaways, or other promotions to convince buyers one product is superior to another”
craft/ trade union
“an association of skilled workers who perform the same kind of work”
value-added tax (VAT)
“tax placed on the value that manufacturers add at each stage of production”
Entitlements
“broad social programs for eligible individuals”
Public Sector
“part of the economy made up of federal, state, and local governments”
Collusion
“formal agreement to set prices or behave in cooperative way”
agency shop
“arrangement in which workers are not required to join a union but must pay union dues”
alternative minimum tax
”personal income tax rate that applies whenever the amount of taxes paid falls below a designated level”
Deficit Spending
“spending in excess of revenues collected”
Private Sector
“part of the economy made up of private individuals and privately owned businesses”
Oligopoly
“market structure where a few very large sellers dominate”
right-to-work law
“a state law making it illegal to force workers to join a union as a condition of employment”
investment tax credit
“reduction in business taxes tied to investment in new plants and equipment”
Crowding-out effect
“higher-than-normal interest rates caused by heavy government borrowing”
Pork
“a line-item budget expenditure that circumvents normal budget procedures and benefits a small number of people or businesses”