BEC Economic Theory Review 7
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---------------------------- means all buyers and sellers have access to the same information.
Perfect information means all buyers and sellers have access to the same information.
What is the concentration ratio?
The percentage of a markets output quantity from its 4 largest entities.
What is a vertical merger?
A vertical merger describes mergers along a supply chain, for example an iron mine and a steel manufacturer.
What is a horizontal merger?
A horizontal merger describes the merger of two entities that are competitors or near competitors.
What is a Conglomerate?
a conglomerate merger is the merger of two entities in different markets.
What is Gross Domestic Product (GDP)
the total market value of all final goods and services produced within a specified country
What is Gross National Product?
The total market value of all final goods and services produced with resources from a specified country, not necessarily within its borders.
What is Net Domestic Product
GDP less depreciation
What is national Income?
NDP plus a country's net income earned abroad less indirect business taxes. In other words, it is the sum of wages interest rent and profits plus a country's net income earned abroad.
What is Personal income
national income plus transfer payments less both corporate income taxes and undistributed profits and less social Security contributions.
What is disposable income
personal income less personal income taxes. Disposable income is divided between consumption interest payments and savings.
What is Real per capita output
Real per capita output is GDP divided by population adjusted for inflation. It is used as a measure of the standard of living.
What is Balance of Power?
A distribution of power in which no single nation is able to dominate or interfere with others.
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