A maximum price for a good or service
Price Ceiling
Any price or quantity not at equilibrium
Disequilibrium
Requires no specialized skills, education, or training
Unskilled Labor
A market dominated by a single seller
Monopoly
A business organization owned by two or more persons who agree on a specific division of responsibilities and profits
Partnership
When the stack market steadily rises over a period of time
Bull Market
A market structure in which a few large firms dominate a market
Oligopoly
Units in which ownership of a corporation are sold in
Shares
Anything that serves as a medium of exchange, a unit of account, and a store of value
Money
The union and company representatives meet to negotiate a new labor contract
Collective Bargaining
Created in 1890 and banned monopolies and other business combinations that prevented competion
Sherman Antitrust Act
When quantity demanded is more that quantity supplied (excess demand)
Shortage
How people acquire goods and services without money, used in a traditional economy
Bartering
Philosopher and political economist known better as a communist and the author of Communist Manifesto
Karl Marx
Supervises and regulates banks, implements monetary policy, controls the amount of currency in circulation, and sets reserve ratios
Federal Reserve
A general increase in prices
Inflation
The point at which quantity demanded and quantity supplied are equal
Equilibrium
A market that runs most efficiently when one large firm supplies all the output, like public water
Natural Monopoly
A business owned and managed by a single individual
Sole Proprietorship
An institution for receiving, keeping, and lending money
Bank
When each single share of stock of stock splits into more than one share, used to encourage investors to buy stock
Stock Split
The idea that government spending and tax cuts help an economy by raising demand
Demand-Side Economics
Lays out the foundation for communism by describing the conflict between the proletariat and the bourgeois as leading to revolution
Communist Manifesto
Investing money in companies and giving them tax breaks will benefit the economy because eventually consumers will experience the effects
Trickle Down Effect
The countries largest and most powerful exchange
New York Stock Exchange
Demands advanced skills and education
Professional Labor
This is a measure that bans mandatory union membership; NC is one
Right to Work (State)
When quantity supplied is more than quantity demanded (excess supply)
Surplus
A product that is the same no matter who produces it
Commodity
A monopoly created by the government
Government Monopoly
Organized work stoppage intended to force an employer to address union demands
Strike
A market structure in which many companies sell products that are similar but no identical
Monopolistic Competition
A substantial drop in prices
Deflation
A legal entity owned by individual stockholders
Corporation
When the stock market steadily falls over a period of time
Bear Market
A minimum price for a good or service
Price Floor
Requires specialized abilities and training to do tasks
Skilled Labor
The neutral third party reviews the case and imposes a decision that is legally binding for both sides
Arbitration
Joining of two or more firms competing in the same market with the same good or service
Horizontal Merger
Requires minimal specialized skill and education
Semi-Skilled Labor
The American market for over the counter stocks
NASDAQ (National Association of Securities Dealers Automated Quotation)
Believed a centralized baking system was necessary
Federalist
Offer checking services, accept deposits, and make loans
Commercial Banks
Merging of more than three businesses that make unrelated products
Conglomerate
Money made when an investor sells stock for more than he or she paid for it
Capital Gains
Link buyers and sellers of stock, work for a brokerage firm
Stockbrokers
A portion of a corporations profit paid out to stockholders quarterly
Dividends
Policy that states during a recession or depression the government should increase spending or decrease taxes
Expansionary Policy
Joining of two or more firms involved in difference stages of production of the same good or service
Vertical Merger
The person who developed the idea of demand-side economics, which encourages government action to increase and decrease demand and output
Keynes
Large corporation that produces and sells its goods and services throughout the world
Multinational Corporations
Originally created when members deposited funds into a general fund and then borrowed money to borrow their own homes; now serves many of the same functions as a bank
Savings and Loans
Neutral mediator meets with each side to try to find some solution and the decision reached is nonbinding
Mediation
An organization that tries to improve working conditions, wages, and benefits for its members
Labor Union
Money lost when an investor sells stock for less than he or she paid for it or when a company doesn't make a profit or can't pay dividends
Capital Loss
Wanted a decentralized banking system where banks were operated by the states
Anti-Federalist
During times of recession and depression the Fed _______ interest rates. (this encourages lending and discourages savings)
Decrease
During times of inflation the Fed ____ interest rates (this encourages savings and discourages lending)
Increase
Used to determine stock performance by either examining 30 large companies or 500 companies
Dow Jones/ S&P 500