Download Economics Unit 2 Study Guide

Economics
Unit 2 Study Guide
Matching:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Economies of scale
Trust
Franchise
Oligopoly
Barrier to entry
Price war
Antitrust laws
Market power
Differentiation
Perfect competition
__ 1. A market structure in which a few large firms dominate the market
__ 2. A series of competitive price cuts that lower the market price below the cost of production
__ 3. Factors that cause a producer’s average cost per unit to fall as output rises
__ 4. An illegal grouping of companies that discourages competition
__ 5. The right to sell a good or service within an exclusive market
__ 6. Making a product unlike other products
__ 7. Any factor that makes it difficult for a new firm to become part of a market
Matching:
a.
b.
c.
d.
e.
f.
g.
h.
i.
Start-up costs
merger
cartel
license
deregulation
commodity
price fixing
price discrimination
monopoly
j.
patent
__ 8. Combination of two or more companies into a single firm
__ 9. The removal of some government controls over the market
__ 10. A market dominated by a single seller
__ 11. A license that gives the inventor of a new product the exclusive right to sell it for a certain period
of years
__ 12. The expenses a firm must pay before it can begin to produce and sell goods
__ 13. A product that is considered the same no matter who produces it
__ 14. A government-issued right to operate a business
Matching:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
assets
business organization
trade association
limited partnership
sole proprietorship
professional association
business license
corporation
cooperative
bond
__ 15. An establishment owned by two or more persons in which only one person has unlimited
personal liability for the business
__ 16. Nonprofit association that promotes the interests of a particular industry
__ 17. Money and other valuables belonging to an individual or business
__ 18. A business owned and managed by a single individual
__ 19. A business organization owned and operated by a group of individuals for their mutual benefit
__ 20. A legal entity owned by individual stockholders
__ 21. A certificate issued by a corporation promising to repay a loan with interest to the buyer
__ 22. An establishment formed to carry on commercial enterprise
Matching:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
white-collar worker
unskilled labor
learning effect
labor union
semiskilled labor
right-to-work laws
productivity
equilibrium wage
glass ceiling
collective bargaining
__ 23. A measure that bans mandatory union membership
__ 24. The wage rate that gives neither an excess supply of workers nor an excess demand for workers
__ 25. An unofficial, invisible barrier that prevents women and minorities from advancing in businesses
dominated by white men
__ 26. Labor that requires minimal specialized skills and education
__ 27. The value of a worker’s output
__ 28. Someone in a professional or clerical job who usually earns a salary
Matching:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
fractional reserve banking
currency
commodity money
default
Federal Deposit Insurance Corporation (FDIC)
Federal Reserve System
interest
mortgage
principal
representative money
__ 29. Failure to pay back a loan
__ 30. The government agency that makes sure that customers’ money is safe if a bank fails
__ 31. Objects that have value in themselves and that are also used as money
__ 32. Coins and paper bills used as money
__ 33. The price paid for the use of borrowed money
__ 34. A system that keeps only a fraction of funds on hand and lends out the remainder
__ 35. Objects that have value because the holder can exchange them for something else of value
Matching:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
bear market
bull market
capital gain
equities
financial asset
investment
par value
portfolio
prospectus
yield
__ 36. An investment report to potential investors
__ 37. The use of assets to earn income or profits
__ 38. Amount paid to purchase a bond that will be repaid at maturity
__ 39. The annual rate of return on a bond if the bond were held to maturity
__ 40. Claim on the property or income of a borrower
__ 41. Claims of ownership in a corporation
__ 42. The difference between a higher selling price and a lower purchase price, resulting in a financial
gain for the seller
__ 43. A steady drop in the price of stocks over a period of time
Matching:
a.
b.
c.
d.
e.
f.
g.
h.
i.
bear market
bull market
equities
investment
money market
portfolio
primary market
prospectus
return
j.
speculation
__ 44. The act of redirecting resources from being consumed today so that they may create benefits in
the future
__ 45. A collection of financial assets
__ 46. Market for selling financial assets that can only be redeemed by the original holder
__ 47. Claims of ownership in a corporation
__ 48. Market in which money is lent for periods less than a year
__ 49. A steady rise in the stock market over a period of time
__ 50. The practice of making high-risk investments with borrowed money in hopes of getting a big
return
Additional Information
Please familiarize yourself with the following terms and concepts:
Natural monopoly
Monopolistic competition
Nonprice competition
Deregulation
Sherman Antitrust Act
Percentage of businesses that are sole proprietorships
Vertical merger
Horizontal merger
Royalties
Fringe benefit
Advantages and disadvantages of sole proprietorships
Limited liability partnership vs. general partnership (advantages and disadvantages)
Collective bargaining
EEOC and the complaints they handle