economics unit 3

perfect competition
market situation in which there are numerous buyers and sellers and no single buyer or seller can affect price
industry dominated by a few supplier who exercise some control over price
large corporation made up of smaller corporations dealing in unrelated businesses
reduction of government regulation and control over business activity
cost-benefit analysis
a financial process in which a business estimates the cost of any action and compares it with the estimated benefits of that action
intermediate-term financing
fund borrowed by a business for 1 to 10 years
combines labor of people and machines
offering a product for sale in a small area for limited period of time to see how well it sells before offering it nationally
penetration pricing
selling a new product at a low price to attract customers away from an established product
businesses that purchase large quantities of goods from producers for resale to other businesses
blue-collar worker
category of workers employed in crafts, manufacturing , and non-farm labor
highly educated individuals with college degrees and usually additional education or training
agency shop
company in which employees are not required to join the union, but must pay union dues
union and management submit the issues they cannot agree on to a third party for a final decision
what are the four characteristics of a pure monopoly?
1. A single seller

2. No substitutes

3. No entry: the monopolist is protected by obstacles to competition that prevent others from entering the market

4. Almost complete control of market price

what two methods does the federal government use to keep businesses competitive?
Sealed bidding and competitive negotiation
what are three general types of debt financing?
Short-term, intermediate and long-term
what type of financing is issuing a stock considered as?
Equity financing
what does assembly-line production require?
Coordination, cooperation and an understanding of continuous flow operation
what steps are involved in market research?
Gathering, recording and analyzing data about the data ,about the types of goods and services that people
what two marketing strategies depend on price?
Penetration pricing and price leadership
what is the difference between retailers and wholesalers?
Retailers sell consumer goods directly to the public and wholesalers purchase large quantities from producers To resale
what is the difference between white collar and blue collar workers?
Blue-collar workers are employed in crafts, manufacturing and nonfarm labor and white colllars are employed offices, sales, or professional positions
what are the major kinds of labor unions?
Craft and industrial unions
what do union workers do when they go on strike?
Walk up and down in front of their workplace caring picket signs the state the disagreement with the company