Market Failure
This occurs when people acting in their self-interest produce socially inefficient outcomes
Market Failure
The tendency to overuse a common resource
Tragedy of the commons
Externality
The ability of a single firm or group of firms to substantially influence market prices
Market power
A market structure in which only one firm dominates
Monopoly
In the labor market, firms are ____________. (suppliers or demanders)
Demanders
What is the current federal minimum wage in the U.S.?
$7.25
A work or intervention that is the result of creativity, to which one has exclusive rights, is known as _____________________ property.
Intellectual
True or false: The government providing free broadband internet to the public is an example of a public good.
True
If producers can't keep nonpayers from consuming a good / service, that good / service is _________________.
Nonexcludable
If producers can keep nonpayers from consuming a good / service, that good / service is ____________.
Excludable
Products that cause ________________ externalities are often underproduced, since the private costs may outweigh the private benefits.
Positive
A "unicorn" market structure in which there are many buyers and sellers, it's costless to enter / exit the market, and everyone has perfect information.
Perfect competition
When companies join / combine together into a new, larger company, this is known as a ___________.
Merger
A job is extremely dangerous. Due to a low supply of workers, the wages will likely __________________.
Increase
total assets, minus liabilities
Wealth
A license that protects original works of authorship. (This typically ends 95 years after publication, or 70 years after the death of the author.)
Copyright
How many major media conglomerates are there?
6
If multiple parties can consume the same product at the same time, it is considered _________________.
Nonrivalrous
If only one party can consume a product at a time, the product is ______________________.
Rivalrous
When incentives are changed so that spillover costs or benefits are incorporated into a firm's decision-making, this is known as _______________________.
Internalizing the Externalities
A market structure in which there are only a few firms that dominate the market
Oligopoly
An illegal agreement among firms to unfairly limit competition
Collusion
This occurs when government regulation backfires causes a decline in economic well-being
Government failure
the payment people receive for providing resources in the marketplace during a specific period in the form of wages, salary, rent, profit, and interest
Income
According to the CBS news segment we watched, the top 1% of wealthy Americans have ______% of the wealth.
40%
If a company is granted an exclusive right to sell a product / service, they have the ____________.
Patent
A person who receives a benefit from something that they didn't pay for is known as a _________________.
Free-rider
Goods and services that are nonexcludable and nonrival are known as ____________________.
Public goods
Aside from government regulation, the other main influence that can remedy externalities is _____________________.
Social pressure
Give an example of a product sold under monopolistic competition.
Jeans, household items (towels), Fast food
Duke Energy is an example of a _____________. (Be specific!)
Natural monopoly
If a job becomes more prestigious, the supply of labor will _____________.
BONUS: This leads to a ___________ of labor that will cause wages to _____________.
Increase
BONUS: Surplus, Decrease
Name the two main ways the government attempts to lower income inequality in the U.S.
Social safety net, progressive income tax
A government might use ________________________ to break up monopolies and increase competition.
Antitrust Legislation
Name one "leaky bucket" critique of government-assistance programs that are designed to lower income inequality.
Costs of redistribution, Reduces incentive to work, Promotes tax evasion / fraud
Name one way in which the tragedy of the commons can be prevented or resolved.
Property Rights, Collective action agreement, Government regulation, Making nonexcludable goods excludable
For the tragedy of the commons to occur, the product must be _____________________ and ______________________.
Nonexcludable and rivalrous
Governments can encourage firms to produce products that have positive externalities by giving them _______________.
BONUS: Governments can discourage firms from producing products that lead to negative externalities by imposing _________.
Subsidies
BONUS: Taxes
Carnegie Steel owns businesses / controls all phases of production, including mining raw resources, shipping, and refining. This is known as _________________ integration.
Vertical
The portion of profits that goes to each stockholder / shareholder
Dividends
Technology can do a task more efficiently than humans. This means the _______________ for labor will decrease, causing wages to _________________.
Demand, Decrease
What is one argument AGAINST raising the minimum wage?
BONUS: What is one argument FOR raising the minimum wage?
Increased labor costs, outsourcing, unemployment, higher cost of living
BONUS: Boosts productivity, reduces inequality, spurs economic growth, promotes education, improves employee retention
If someone's eligibility for government assistance depends on their income, assets, or other criteria, the assistance is _________________________.
BONUS: Give an example of government assistance for low-income households.
means-tested
BONUS: Medicaid, SNAP, EITC, Housing assistance
A license that protects an image / logo or word(s) associated with a particular brand.
Trademark