Chapter 6
How does supply change when demand increases?
Economic system where there is only one firm controlling a product.
Monopoly
True or false economic indicators help predict the future of the economy?
True
Name one example of a developing country.
ex. Algeria, Iraq, South Africa
What happened to the economy in the 1930’s?
The great depression
When supply is greater than demand
Surplus
The combination of two or more firms that produce the same product
Horizontal Merger
Because of covid 19 the economy is currently in what stage of the business cycle?
contraction or recession
What is another name for industrial market countries?
developed countries
Adults who are either working or looking for a job.
the labor force
Price at which quantity supplied and quantity demanded are equal.
Equilibrium price
True or false, monopolies always sell at the profit maximizing price
False
What does GDP measure
The total of all the final goods and services produced in a country over a given period of time
Give one example of an industrial cluster.
ex. Hollywood, silicon valley, wall street.
What is a Tariff?
Tax on imports
The other field of study that behavioral economics draw from to better explain economic decisions
Psychology
Market structure with low market barriers and many firms selling slightly differentiated products
Monopolistic competition
What is depreciation?
The value of something declines
True or false applied research is used to develop specific products?
True
What is the combined GDP of all nations
World Output
What is Transaction Cost?
Cost of time and information needed to carry out market exchange
A group of firms that agree to work together as a monopoly
Cartel
If a company buys used copiers, is this an investment, explain?
No. The capital goods are used, so they are not included in GDP.
What is labor productivity?
The output per unit of labor
What does WTO stand for?
World Trade Organization