The Market Structures
Large # of small companies competing. Sell similar products, and are free to enter and exit the market.
Perfect Competition
individual’s drive to undertake activities that will yield net economic gain.
Profit Motive
point toward future events associated with the health of the economy.
Leading Economic Indicators
The Circular Flow model is made up of what 5 components?
Government, Household/individual, Resource/Factor Market, Businesses, Product Market.
Every business cycle includes two distinct points
Peaks & Troughs
High prices are created as a result
Monopoly
idea that consumers hold the power to influence production decisions
Consumer Sovereignty
reviewed after a change in the economy within the present and confirm trends
Lagging Economic Indicators
How do Individuals interact with the resource/factor market?
Households/individuals supply the resource/factor market with labor.
When GDP is going down in a trough this is
Recession
companies offer competing products but are not perfect substitutes.
Monopolistic Competition
Opportunity Cost?
the loss of potential gain from other alternatives when one alternative is chosen. What you have to give up to buy.
used by individuals and firms to make decisions about consumption and production.
Microeconomic Indicators
Explain how businesses interact with the resource/factor market?
Businesses demand labor from the resource market and in return give the labor wages $$$
When GDP is climbing to a peak this is
Expansion
No one company has enough sway to undermine others’ market share.
Oligopoly
is the time or money choosing one one option.
Explicit Cost
Consumer Price Index (CPI), Inflation, Unemployment are?
Lagging Economic Indicators
How do businesses interact with the product market?
Businesses supply goods and services to the product market and in return the product market offers revenue back to the businesses.
Contraction is
economic output is in decline.
List the market structures in order from least competitive to most competitive.
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
happiness or satisfaction with the decision costs rather than a tangible effect on you.
Implicit Costs
New House Construction, Purchasing Manager Index (PMI), Stock Index are?
Leading Economic Indicators
How does government interact with businesses and individuals?
Government supply's public goods to both, Government gives businesses subsides, Transfer payments to individuals and in return businesses/individuals pay taxes.
Full business cycle last?
From one peak to the next