Circular Flow of the Economy
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20 terms
Terms | Definitions |
|---|---|
 Factor Market | market in which firms purchase the factors of production from households |
| Product Market | a market in which products are sold by firms and bought by households |
| Mediation | negotiation to resolve differences conducted by some impartial party |
| Arbitration | settling a dispute by agreeing to accept the decision of an impartial outsider |
| Labor Union | an organization of workers that tries to improve working conditions, wages, and benefits for its members |
| Sole Proprietorship | business owned by one person |
| Corporation | a business owned by stockholders who share in its profits but are not personally responsible for its debts |
| Unlimited Liability | The owner is personally and fully responsible for all losses and debts of the business |
| Limited Liability | A form of business ownership in which the owners are liable only up to the amount of their individual investments. |
| Mutual Fund | fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets |
| Bull Market | a steady rise in the stock market over a period of time |
| Bear Market | A steady drop in the stock market over a period of time |
| Monopoly | control of a product or service by one company |
| Oligopoly | a market structure in which a few large firms dominate a market |
| Perfect Competition | a market structure in which a large number of firms all produce the same product |
| Partnership | a business in which two or more persons combine their assets and skills |
| Right to Work Laws | state laws forbidding unions from forcing workers to join and pay union dues |
| Collective Bargaining | Process by which a union representing a group of workers negotiates with management for a contract |
| Merger | the combination of two or more commercial companies |
| Conglomerate | a group of diverse companies under common ownership and run as a single organization |
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