product differentiation
if a consumer prefers Nike shoes to Reebok, that is an example of a
Own a corporation
type of business that brings in the most revenues
sole proprietorship
the most common form of business
monopolistic competition
advertising is most used in this kind of market
board of directors
the group in a corporation that hires officers to run the business and hire other employees
the dominant buyer
when two or more companies combine
when four or more unrelated companies are controlled by the same corporation
Sherman Antitrust Act
an 1890 law that was the first US legislation to prevent monopolies
the supple of items used in a business
monopolistic competition
the most common market structure
when a business sells the rights to use it's name and sell its products
Clayton Act
A 1910 law that banned interlocking directorates and mergers that significantly lessened competition
the license to operate a corporation (granted by an individual state after the business has filed articles of incorporation)
Protects consumers from misleading and fraudulent advertising. Reviews advertising claims. Can order a company to change their ad
The agency that is responsible for determining if a food or drug is safe and effective enough to be sold to the public.
established to oversee wired and wireless communication
a government agency in the Department of Labor to maintain a safe and healthy work environment
agency that made public responsible for public interest and required environmental impact statements of most public projects
an independent federal agency created in 1974 to license and regulate nuclear power plants
horizontal merger
when companies buy other companies that are similar to them (Wendy's and McDonald's)
vertical merger
when companies buy other companies from the same process to cut out the middle man (Sandwich Shoppe and Bakery)
four basic elements of business operation
advertising, expenses, risk, record keeping
four types of market structures
monopolistic competition, perfect competition, monopoly, oligopoly
the company that received bad press through social media last summer (especially through youtube)
intellectual property
songs, books, movies, and other creative works
primary audiences for websites
shareholders, customers, and employees
frequency marketing
the information gathered by computers that can track the choices and regularity of consumer purchases
the economist who theorized that economic change was usually driven by technological change
"generation y"
the youth market
ad clutter
the immense amount of ads that consumers are exposed to
business conducted on the internet
4 P's of Marketing
Product, Price, Place, and Promotion
collective bargaining
the process in which unions and employers negotiate the conditions of employment
white-collar workers
the largest sector of the American labor force
closed shop
a company in which only union members may be hired
labor union
association of workers organized to improve wages and working conditions for its members
when management reduces the hours that workers are scheduled but demands the same level of productivity/output
4 different skill levels of labor
professional, skilled, semi-skilled, unskilled
3 factors that typically determine wages
geography, type of job, and skill level
current US minimum wage
the name of the merger between the craft and industrial unions finalized in 1955
the condition arising from a limited supply of resources insufficient to meet unlimited wants
there is no such this as a free lunch
Adam Smith
an 18th century economist who advocated capitalism in his book, The Wealth of Nations
the money left over after all costs have been paid
things you must have to survive (water)
anything besides survival needs (iPod)
durable good
a good that lasts for over three years (computer)
non-durable good
a good that lasts for less than 3 years (flashlight)
a fixed amount of good that must be met
economic stability
prices of good cannot fluctuate dramatically over a short period of time
economic freedom
the ability to buy and produce whatever you want from/for whomever you want
3 questions of production
what to produce?
for whom?
how to produce?
factors of production
land, labor, entrepreneurs, capital goods, and technology
3 main economic systems
traditional, market, and command
4 costs that businesses incur
labor, utility, rent/place, capital goods