Review Goal 8 Part 2

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