1 / 13

Ch. 7.2 Notes : Market Failure

Ch. 7.2 Notes : Market Failure. 5 variables that cause a market system to fail…. A. No Competition = Need companies to fight for your business 1. Allows prices to be reasonable 2. Collusion might occur = companies

lynne
Download Presentation

Ch. 7.2 Notes : Market Failure

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ch. 7.2 Notes : Market Failure

  2. 5 variables that cause a market system to fail…..

  3. A. No Competition = Need companies to fight for your business 1. Allows prices to be reasonable 2. Collusion might occur = companies strategizing together to set price

  4. B. Dishonesty with Information = cannot take advantage of investors/buyers Last weekend, 50, born Curtis Jackson, reportedly Tweeted to his 3.8 million followers, “You can double your money right now. Just get what you can afford” and “They are no joke get in now” . H&H closed at 39 cents on Monday, up 29 cents, netting Jackson’s shares the aforementioned $8.7 million. Later, Jackson apparently back-peddled a bit when he reportedly deleted his original posts and Tweeted, “I own HNHI stock thoughts on it are my opinion. Talk to financial advisor about it.” And “HNHI is the right investment for me it may or may not be right for u! Do ur homework.” Read more: http://entertainment.blogs.foxnews.com/2011/01/12/50-cent-sec-tweeting-twitter-stock-advice-tips/#ixzz1aV05MeNq

  5. C. Workers not willing to move = workers, businesses must be free to move to areas where they will succeed

  6. D. Externality = a side effect to an activity 1. Negative E = bad side effect 2. Positive E = good side effect 3. a market failure because those affected negatively are not being compensated

  7. E. Too many Public Goods = goods & services that are provided through tax dollars

  8. 9 million people in jail worldwide 2.2 million of them are in U.S. jails (25%) 170,000 are in CA jails

  9. CH. 7.3 fill in Notes : Agencies and Laws

  10. II. Federal Agencies created to regulate • businesses: • A. CPSC (1972) = develops safety standards • of consumer goods • B. FDA (1906) = enforces safety and • truthfulness of food, drugs, and • cosmetics • C. FCC (1934) = regulates radio and t.v. • programs • D. SEC (1934) = regulates stock industry • E. EEOC (1964) = investigates employer • discrimination http://shopping.yahoo.com/news/10-beloved-banned-and-recalled-products-20121114-211459.html

  11. F. EPA = protects environment G. NRC = regulates nuclear power industry

  12. http://totallyabsurd.com/archive.htm = funny patents http://www.prnewswire.com/mnr/adcouncil/34089/ suction tires http://www.uspto.gov/ = patent office http://www.dispatch.com/live/content/business/stories/2010/03/07/the-new-frontier.html?sid=101 >>>> article about average price of monthly cell service

More Related