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Oligopoly
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A few firms are in this type of industry
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Monopoly
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One firm dominates the industry
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Perfect/Pure Competition
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All firms have identical products
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Monopolistic Competition
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Firms have similar products that are differentiated
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Sole Proprietorship
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This type of business organization has the highest level of risk in starting a business
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Advantage of a corporation
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owners have limited liability for debt
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Surplus
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when supply exceeds demand
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Shortage
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A situation in which quantity demanded is greater than quantity supplied
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Price
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A change in this changes the quantity supplied or the quantity demanded
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an increase in government regulations
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This factor might cause a decrease in the supply of a product
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new fertilizers increase crop yields
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what might cause a right shift in the supply curve (an increase in supply)
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producers to supply more and consumers to buy less
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in a market economy, what would result from an increase in price
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equilibrium price
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the price at which the quantity demanded equals the quantity supplied
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unlimited liability
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The owner is personally and fully responsible for all losses and debts of the business
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Price floor
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Minimum wage is an example
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Price Ceiling
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Rent control is an example - maximum legal price that can be charged
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Profit
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This serves as an incentive for entrepreneurs in a market economy
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Microeconomics
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the study of how households and firms make decisions and how they interact in markets
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Shareholder
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the name for an individual who owns a share of a corporation and is entitled to part of its profits
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Limited Life
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situation in which a firm ceases to exist when an owner dies, quits, or sells the business
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Partnership
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a business owned by two or more people
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Specialization of skills
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An advantage of a partnerships, but not of sole proprietorships
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Risk/returns of investing in stocks
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They offer the highest risks and the highest potential returns
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Fiat money
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money that has value because the government has ordered that it is an acceptable means to pay debts
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Factor Market
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where all exchanges concerning the factors of production take place
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Households
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the owners of the factors of production
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Rent
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a payment for land, as a factor of production
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Interest
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Payments for the use of capital
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Accepted as payment
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the MAIN requirement for any type of money to become a medium of exchange
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Factor market
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when the US government hires FBI agents, it is making a transaction in what market?
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Taxes
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how are most public goods and services paid for in the US?
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Complementary goods
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Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely).
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