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Economics: Unit 2 (Chapter 6 (secondary industry (industry involving…
Economics: Unit 2
Chapter 6
quaternary industry
industry involving research and development
labs, research facilities
Sole Proprietorship
Business owned by 1 person
tertiary industry
industry of providing service
ex. doctors, police
Partnership
business owned by 2 or more
secondary industry
industry involving manufactured profucts
ex. furtniture, cars
Corporation
company distinguished as a separate entity
primary industry
industry involving natural resources
ex. hydro, mining
Co-operative enterprise
business equally owned by separate people
Government enterprise
provides services that private enterprises do not
Horizontal integration
two similar firms merging
Corporate Alliance
separate companies that have an agreement
Vertical integration
two simialr firms merging
different stages of production for product
Chapter 5
floor price
minimum price for goods/service
ceiling price
maximum price for goods/service
subsidies
goods that are replacable
marginal utility
additional satisfaction from 1 more unit
quotas
restricted amount of product produced
limit equals total goods
utility theory
satisfaction from product/service
elasticity
measure of consumers reaction to price
price elasticity of demand/supply
amount of product consumer purchases
Chapter 7
Marginal revenue
income from selling one more unit
Perfect competition
many firms with the same product
Marginal cost
cost of producing one more unit
Monopolistic competition
many firms with different product
Variable costs
cost that does change
materials
Oligopoly
few firms with the same product
Fixed costs
cost that does not change
rent,utilities
Monopoly
1 firm with the same product
Chapter 4
law of demand
consumers buy more price decreases
consumers buy less when price increases
supply
amount of goods available
demand
the desire to own something
law of supply
suppliers offer more at a higher price
market
equilibrium
quantity demanded = quantity supplied
Chapter 8
Labour Unions
working oraganization
Collective bargaining
negotiations between management and union
Wage differentials
difference in wage based on labour type
Industrial union
represents workers in given industry
Marginal revenue product of labour
extra revenue made for firms (MRPL)
Derived demand
demand for labour
