MONOPOLY
What is Perfect Competition
And Give an example.
Many sellers, identical products, no control over price.
Strawberries. balloons
Give an example
One seller, consumer has no other option when it comes to price.
Example: 1990s Microsoft, 20th century Standard Oil Company. Gas and Water and electric companies
Define Monopolistic Competition
Give example
Monopolistic Competition: Many sellers, similar but not identical products, some control over price. Low barriers to entry
Example: restaurants, local pizza places, Fast food.
What is an Oligopoly
Provide an example
Few large firms dominate, significant barriers to entry, interdependent pricing.
Example: Airlines, Google, Apple, HP, Etc.
Choose one to define
Sole Proprietorship:
Partnership:
Corporation:
Franchise:
Nonprofit:
One owner; most common.
Partnership: Two or more owners.
Corporation: Legal entity, limited liability, easiest to raise capital through stocks.
Franchise: Right to use a company’s brand
Nonprofit: Operates for public good, not profit.
What is one concern about Oligopolies negatively effecting consumers
Oligopolies may collude, raising prices and reducing output.
How do you define a Recession
2 quarters of consecutive economic decline
What is the CPI?
What is the purpose of CPI?
Consumer price index
To measure inflation and track price changes over time.
What is a deficit?
Why is this a big deal or why is this not a big deal?
When the government is spending more money than it is taking in.
the United States can run a deficit because it has the ability to borrow money primarily by issuing U.S. Treasury bonds and because the U.S. dollar is the world's primary reserve currency, which gives it unique financial flexibility.
persistent deficits can lead to growing national debt, which might cause problems over time like higher interest payments or less flexibility in future budgets.
What would the Fed do in the event of a recession? Why
Lower interest rates
A benefit of Perfect competition has this effect on Prices________ and this effect on production_______
Perfect competition leads to the most efficient outcomes (low prices, high output).
A depression is
A long-term severe economic downturn persisting longer than 2 quarters.
Define Unemployed vs Unemployment rate
Not working but seeking work
(Unemployed ÷ Labor Force) × 100
What is National Debt?
What is the current National Debt?
The national debt is the total amount of money the U.S. federal government owes to creditors
36.2 Trillion
What would be the first step that the fed would take in the event of a rapid rise in inflation? Why?
Raise interest rates
Point the finger at a local or national company that you feel has a monopoly. Prove it
JUDGEMENT FOR YOU
Give an example of a specific type of tax for federal and state.
JUDGEMENT
What is a criticism of the American Economy. Explain why.
JUDGEMENT THROUGH FURY AND WRATH
What would a government do in a recession or a depression?
Describe a major change in American Fiscal policy. You may describe any point in American History
Judgement
Describe a benefit of a Natural Monopoly
A market where one firm can supply a product more efficiently than multiple competitors (e.g., utilities). They exist because duplication of infrastructure would be wasteful.
what is inflation
What is the target inflation rate set by the fed.
Natural rise in prices over time, 2%
Define Labor force
individuals who are of working age (typically 16 years and older) and are available to work.
However, it does not include:
People who are not actively looking for work (e.g., retirees, stay-at-home parents, students not seeking work).
People who are not working and are not actively seeking a job (e.g., discouraged workers).
What is fiscal policy?
refers to the use of government spending and taxation to influence the economy. It is one of the key tools governments use to manage economic performance, alongside monetary policy, which is controlled by the central bank
Raising interest rates, Buying or selling bonds, raising or lowering reserve amounts.