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What is a private good
an economic good that, when consumed by one person, cannot be used by another
What is a public good
an economic good that is used collectively, such as a highway and national defense
How are public goods paid for
Taxes
What are externalities
economic side effect that affects an uninvolved third party
What has externalities
Everything
What is competition for some people
a way of life
Does competition apply to economics
Yuh
What is competition in a market economy
like competition among producers and consumers
How do you attract consumers to your goods
Low price and/or higher quality than the goods provided by others
What does the competition of low price and high quality do
improves the quality of goods and lowers their prices
What does competition do to society
makes a better standard of living for everyone and a prosperous society
What are the four main types of competition market models
perfect competition, monopolies, monopolistic competition and oligopolies
What is perfect competition
a theoretical market structure in which there are no monopolies
What are the characteristics of perfect competition
There must be a large number of independent sellers
There must be a large number of buyers wishing to purchase the product
The industry must be one in which all firms produce standardized products
Firms must have free access to the market
Relevant market information must be made available
What is a monopoly
The situation that arises when a single firm is the only supplier of a good for which there are no substitutes
What are the characteristics of a monopoly
A firm must be the sole supplier of the good or service
There must be no close substitutes for the firm's product
Entry into the market by other firms is blocked
What is an oligopoly
A market that occurs when an industry is dominated by only a few firms.
What are the characteristics of an oligopoly
There are only a few firms in the entire industry (must be at least two)
Firms in an oligopoly may sell products that are either differentiated or virtually the same
Potential firms are discouraged entering the market by the existence of significant barriers
What is monopolistic competition
The market is one where firms promote differentiated products, they are similar but not exactly the same
What are the characteristics of monopolistic competition
There must be a large number of firms in the market.
The firms provide differentiated products.
Firms are able to easily enter or exit the market
What is a legal monopoly
granted by the government to encourage the invention and production of new products which helps individuals or businesses protect their investment
What are some types of legal monopolies
Patents, trademarks, and copyrights
What is a patent
a government license giving a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention
What is a trademark
a symbol, word, or words legally registered or established by use as representing a company or product.
What is a copyright
the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same
What is a natural monopoly
Occurs when a single firm can fill the demand for a good more efficiently than multiple firms in the industry
What does GDP stand for
Gross Domestic Product
What is GDP
The value of all finished goods and services produced within a country during a year. This includes any person living within a countri’s borders, citizen and non-citizen
What is the real GDP cycle or whatever
What are the 2 types of inflation
Cost-push and demand-pull
What is cost-push inflation
Inflation caused by rising production cost that result in businesses increasing their prices
What is demand-pull inflation
Inflation caused by demand becoming greater than supply, forcing up the prices that consumers must pay
What is a bull market
Stock prices are rising and the economy appears good
What is a bear market
Stock prices are falling and the economy appears in trouble
Which is better bear or bull market
Bull
Which is worse bear or bull market
Bear
The more educated you are usually…
…the more income you will get
Note
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