Markets, Business, and Labor Test

Market

where buyers and sellers do business

Market Structure List (number of producers, similarity of products, ease of entry into market, control over price)

Perfect Competition

Monopolistic Competition

Oligopoly:

Monopoly:

PC: many, identical, easy, none

MC: many, varied, yet similar, easy, some

O: few, similar, difficult, some

M: one, unique, very difficult, high level

Highest level of competition:

perfect competition

Lowest level of competition:

monopoly

Partnership:

(Name an EX)

2 or more people own the business.

(EX: Ben and Jerry’s)

Corporation:

(Name and EX)

Shareholders own the business.

(EX: Apple)

What are shareholders?

Person who buys stocks within a company.

Sole proprietorship:

(Name an EX)

One person owns that business.

(EX: food truck)

Business Franchise:

Central company that allows local business owners to sell their products and open their own building using their brand.

Cooperative:

A business that is owned and operated by the people who work there.

Nonprofit:

A business that is owned and operated for the sole purpose of fixing a social issue, not for money.

Outsourcing:

When a company hires an outside company to do a job for them.

Offshoring:

When a company sends jobs to another country for cheaper wages

Unskilled Labor:

(Name 2 EX)

A job that requires 30 days or less of training

(EX: Cashier / Waiter)

Semiskilled Labor:

(Name 2 EX)

When a job required more than 30 days but less than a year of training

(EX: Truck / Taxi driver)

Skilled Labor:

(Name 2 EX)

When a job requires 1-3 years of training aka trade school or an apprenticeship.

(EX: Plumber / Electrician)

Professional Labor:

(Name 2 EX)

When a job requires at least 4 years of training aka a college degree.

(EX: Teacher / Lawyer)

Labor force:

Anyone 16+ looking for a job or has one.

Human Capital:

The knowledge, experience, and skills possessed by an individual to do a job.

How are wages determined? Name and describe all 5 factors.

• Danger Level, more risk means the higher the pay.

• Amount of Human Capital, higher the level of human capital, higher the pay.

• Supply of Workers who can/will do the job, very few people who are willing or able to do the job, the job will pay more.

• Discrimination, if the job discriminates against race, gender, age, etc. then your pay will decrease if you have any of those traits.

• Higher Demand for Job, jobs will get paid more based on how important the job is.

Examples of companies that fit into Perfect Competition:

Farmers’ Markets, Banana Plantation, eBay, Online Shopping Companies

Examples of companies that fit into Monopolistic Competition:

Hotels, McDonald’s, Fast Food Chains, Barbers, Hair Salons, Great Clips

Examples of companies that fit into Oligopoly:

Apple, Computer Market, Phone Market, Airlines, Verizon, Phone Service Providers

Examples of companies that fit into Monopoly:

Centerpoint Energy, Google, Carnegie Steel