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20 terms

Circular Flow of the Economy

STUDY
PLAY
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