Market Structures
This is where buyers and sellers meet to do business. It can be a physical location or an online storefront.
What is a market?
This type of labor requires minimal training and usually pays the minimum wage or just a bit higher.
What is unskilled labor?
This represents the ownership of a portion of a corporation.
What is a stock?
Ben and Jerry's was initially started by, you guessed it, Ben and Jerry. They shared the profits and paid debts equally. This is an example of which business organization?
What is a partnership?
A product that has the characteristics of non-exclusion and non-rivalry, meaning that private companies are unlikely to produce it.
What is a public good?
This is a market where a firm has exclusive control of the supply or trade in a good or service, and they can set prices however they want.
What is Monopoly?
When a company sends jobs overseas because it is cheaper and/or protects their industry.
BONUS: Name and describe an example of this event in the real economy.
What is offshoring?
BONUS: Various answers
These individuals own a small part of a company and may receive money payments or enjoy the company's success.
What are shareholders? (Or investors)
You decide you are going to start your own company with no help. What type of business organization is this?
What is a sole proprietorship?
An illegal cooperation of companies in a market where they agree to raise or lower prices to reduce competition.
What is a cartel / collusion?
A market with limited competition that is shared by just a few producers or sellers, and they have a bit more power to set prices.
What is Oligopoly?
When a company decides to hire an outside contractor to perform a job that used to be done within the company itself.
What is outsourcing?
The two major stock markets that exist in the United States.
What are the NYSE and NASDAQ?
A company that you can buy stock in that is owned by the shareholders.
What is a corporation?
A group of laborers that is designed to protect worker rights and ensure equal pay.
What is a labor union?
This structure is a state of total competition and is open to everyone. Firms have no market power and are price takers. Their products are identical.
What is Perfect Competition?
This type of labor requires a trade school degree or an apprenticeship, and is usually paid an hourly wage.
What is skilled labor?
A strategy used by investors where they buy different types of stocks from multiple industries to protect their earnings and reduce risk.
BONUS: Why do investors do this?
What is diversifying your portfolio?
BONUS: Protects from negative events only occurring in one industry.
A type of business that exists in multiple places across the US, and can be started up in new places with enough money and a promise to follow the rules.
What is a business franchise?
A side effect that is not accounted for in the normal market analysis of supply and demand, and has to be adjusted for from outside, usually by the government.
BONUS: In what two ways can the government correct for these issues?
What is an externality?
In this market, there is varying competition, the firms produce differentiated products, and they have some market power, but not much.
What is Monopolistic Competition?
A student goes to college, passes the BAR exam, and then starts a job as a lawyer. What type of labor is this job?
What is professional labor?
A partial payment sometimes given out by companies that is meant to draw in potential shareholders and serve as a reward for proper investment.
What is a dividend?
Pick one type of business organization and name:
One advantage,
One disadvantage,
One example of a company.
Multiple answers available.
Name the three types of taxes and which group of people (rich or poor) it affects the most.
What are regressive taxes (poor), progressive taxes (rich), and proportional taxes (equal)?