Econ Unit 3 Vocab Recap

Unit 3 Vocab. Recap.

By Leigh Anne Mize

The spread of businesses and products across the world.

Globalization

Examples:
1. Apple designs iPhones in the U.S. but builds them in China.
2. McDonald's operates restaurants in over 100 countries.

Multiple Choice

Which of the following best shows globalization?

• A local bakery selling only in one town

• A company opening stores in several countries

• A business hiring only local workers

• A farm selling to a local market

Rules of good behavior in business.

Business Ethics

Examples:
1. A company refuses to use child labor even if it is cheaper (& legal).
2. An employee reports dishonest accounting practices.

When companies act responsibly toward society and the environment.

Corporate Responsibility

Examples:
1. A shoe company that uses recycled material.
2. A company sponsors local schools or food drives.

Multiple Choice

Corporate responsibility means a company is focused on...

• avoiding competition

• only making profits

• helping society and the environment

• reducing employee pay

Multiple Choice

Which situation shows good business ethics?

• lying to customers about prices

• donating profits to charity

• firing workers unfairly

• avoiding taxes

Multiple Choice

Which of the following is most likely a nonprofit organization?

• Starbucks

• Nike

• American Red Cross

• Ford Motors

A business that uses another company’s name and system (like McDonald's).

Franchise

Examples:
1. A person opens a Chick-Fil-A restaurant.
2. A local gym buys the rights to use Planet Fitness's brand.

A business owned by one person.

Sole Proprietorship

Examples:
1. A freelance photographer.
2. A local lawn care business run by one owner.

A business owned by two or more people.

Partnership

Examples:
1. A mother-daughter owned bakery.
2. A law firm co-owned by multiple partners.

A business that is a separate legal entity owned by shareholders.

Corporation

Examples:
1. Microsoft
2. Coca-Cola

Multiple Choice

A key advantage of a sole proprietorship is:

• easy to start and control

• limited profits

• shared responsibility

• a lot of start up money

Multiple Choice

Which vocabulary term is described below:
Owned by shareholders

• corporation

• sole proprietorship

• partnership

• franchise

Multiple Choice

Which vocabulary term is described below:
A law firm co-owned by multiple partners.

• corporation

• sole proprietorship

• partnership

• franchise

Multiple Choice

Which vocabulary term is described below:
Operating under another company's brand and system

• corporation

• sole proprietorship

• partnership

• franchise

One company controls all of the market for a product or service.

Monopoly

Examples:
1. A utility company that is the only provider of electricity.
2. Standard Oil in the early 1900s

Many small businesses sell the same product.

Perfect Competition

Examples:
1. Farmers selling corn.
2. Vendors at a local market

A few large companies dominate the market.

Oligopoly

Examples:
1. Airline industry
2. Cell phone service providers (AT&T, Sprint, Verizon)

Multiple Choice

A perfect competition...

• Raises prices through competition

• Discourages innovation

• Eliminates competition and raises prices

• Provides consumers with more choices

Multiple Choice

Which market is an oligopoly?

• Corn farming

• local barber shops

• cell phone providers

• handmade jewelry sellers

Multiple Choice

A monopoly can be harmful because it...

• Lowers prices through competition

• Encourages innovation

• Eliminates competition and raises prices

• Provides consumers with more choices

Businesses fighting to attract customers.

Competition

Examples:
1. Popeyes vs. Chick-Fil-A
2. Apple vs. Samsung

Companies secretly working together to raise prices.

Collusion

Examples:
1. Airlines agreeing to charge the same ticket prices.
2. Oil companies fixing prices.

Multiple Choice

Collusion between companies usually results in...

• lower prices

• deregulation

• higher prices

• more competition

Multiple Choice

Competition is good for consumers because it often leads to...

• fewer choices

• better products

• less innovation

• more collusion

Shares of ownership in a company.

Stocks

Examples:
1. Buying Apple stock
2. Owning a small piece of Amazon

A loan to a company or government that is paid back later with interest.

Bonds

Examples:
1. U.S. War bonds from WWI & WWII
2. U.S. Savings bonds

A payment made to shareholders from a company's profits.

Dividend

Examples:
1. A company gives shareholders $2 per share at year's end.
2. Owning Coca-Cola stock and receiving regular payments.

Multiple Choice

Dividends are usually given to...

• employees as bonuses

• the owners as profit payments

• employees as pay increase

• shareholders as profit payments

Multiple Choice

When you buy stock in a company, you...

• own part of the company

• lend money to the company

• work in the company

• buy the company's product

Multiple Choice

Buying a bond means you are...

• owning a part of the company

• lending money and earning interest

• buying company products

• paying taxes

Match

Match the following definition and terms.

• When companies act responsibly toward society and the environment.

• A group that helps people instead of making a profit.

• The spread of businesses and products across the world.

• Rules of good behavior in business.

corporate responsibility

non-profit organization

globalization

business ethics

• corporate responsibility

• non-profit organization

• globalization

• business ethics

Match

Match the following definition and terms.

• A business that uses another company’s name and system (like McDonald's).

• A business owned by one person.

• A business owned by two or more people.

• A business that is a separate legal entity owned by shareholders.

franchise

sole proprietorship

partnership

corporation

• franchise

• sole proprietorship

• partnership

• corporation

Match

Match the following definition and terms.

• Shares of ownership in a company.

• A loan to a company or government that is paid back later with interest.

•  A payment made to shareholders from a company’s profits.

stocks

bonds

dividend

• stocks

• bonds

• dividend

Measures how much the prices of everyday goods and services (like food, gas, and clothing) change over time. It helps show whether the cost of living is going up or down.

Consumer Price Index (CPI)

Examples:
1. CPI rises when grocery prices increase.
CPI falls if housing costs go down.

The total value of all goods & services produced within a country within one year. It tells us how big or strong a country's economy is.

Gross Domestic Product (GDP)

Examples:
1. The U.S. GDP grows when companies produce and sell more goods.
GDP shrinks during a recession.

Shows how quickly prices for goods & services are rising. If inflation is high, money buys less than before -- prices are going up.

Inflation Rate

Examples:
1. A $1 candy bar now costs $2.50.
2. Gas prices rise 10% over a year.

Multiple Choice

If a country's GDP increases, it means:

• the economy is growing

• prices are falling

• people are saving less

• prices of goods are increasing

Multiple Choice

A rise in the CPI usually means:

• prices are decreasing

• the cost of living is rising

• more people are working

• inflation is low

Multiple Choice

High inflation means:

• money buys less than before

• prices are falling

• more people are unemployed

• the economy is shrinking

The percentage of people who are old enough to work and are either working or actively looking for a job. It shows how many people are involved in the workforce.

Labor Force Participation Rate

Examples:
1. More adults join the workforce when new jobs open.
2. The rate drops when people retire or stop looking for work.

The percentage of people in the labor force who want a job but don't currently have one. It helps show how easy or hard it is to find work in the economy.

Unemployment Rate

Examples:
1. The unemployment rate rises during a recession.
2. The rate drops when companies hire more workers.

Happens when workers' skills don't match the jobs available.

Structural Unemployment

Examples:
1. A factory worker loses their job because machines replaced the work they used to do.
2. A travel agent loses their job because people now book trips online.

Happens when people are between jobs or looking for their first job.

Frictional Unemployment

Examples:
1. A recent college graduate searching for their first full-time job.
2. A teacher moves to a new city and looks for a new teaching job.

Happens when people lose jobs because the economy is doing poorly or in a recession.

Cyclical Unemployment

Examples:
1. A car company lays off workers because fewer people can afford new cars during a recession.
2. Restaurant workers lost jobs during COVID.

Multiple Choice

If the labor force participation rate drops, I could mean:

• more people are entering the workforce

• fewer people are working or looking for work

• the unemployment rate is falling

• prices are going up

Multiple Choice

A rising unemployment rate means:

• more people are finding jobs

• more people are losing jobs or can't find jobs

• prices are increasing

• the government is hiring more workers

Multiple Choice

Structural unemployment happens when:

• workers change jobs

• people take time off

• skills don't match available jobs

• the economy slows down

Multiple Choice

Cyclical unemployment is caused by:

• retirement

• technology changes

• workers changing jobs

• a slow or weak economy

Multiple Choice

Frictional Unemployment happens when:

• people are between jobs or just starting out

• companies go bankrupt

• workers lose jobs to machines

• there's a long recession