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OLIGOPOLY, REALISM: Real world markets are heavily populated by oligopoly. About half of all output produced in the U.S. economy each year is done so by oligopoly firms. Other industrialized nations can make a similar claim. Oligopoly markets arise in a wide assortment different industries, ranging from manufacturing to retail trade to resource extraction to financial services.
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                           INVOLUNTARY EXCHANGE: The process of unwillingly trading one valuable commodity (good, service, or resource) for another, usually prompted by the coercive powers of government. The key term is "unwillingly," which distinguishes involuntary exchanges from voluntary exchanges, such as those that are the foundation of market transactions. Involuntary exchanges are resource allocation activities imposed on the economy by government taxes, laws, and regulations. Unlike a voluntary market exchange, the "buyers" and "sellers" have little or no influence over the allocation decision. They pay the price, produce the good, or use the resources according to government mandates.An Involuntary ExchangeSuppose, for example, that the Shady Valley City Commission imposes a 1 cent sales tax on all jogging shoes sold in the city. When Roland Nottingham buys a pair of jogging shoes for $75, the city collects 75 cents in sales taxes. The Shady Valley City Commission then decides to use this tax revenue, along with that collected from other jogging shoe sales, to erect a statue memorializing the career of former Mayor, Sylvester J. Peabody.Roland is thus involuntarily forced to exchange his 75 cents for a portion of the Sylvester J. Peabody statue. This is a resource allocation decision that Roland would not have undertaken voluntarily. Roland did not like Mayor Sylvester J. Peabody. Roland did not like the political views held by Mayor Sylvester J. Peabody. Roland did not like any policy, program, or ordinance proposed by Mayor Sylvester J. Peabody. Roland would not have voluntarily paid for any part of a statue memorializing the career Mayor Sylvester J. Peabody. But, as a taxpaying citizen of Shady Valley, Roland is forced to abide by the involuntary exchange imposed on him by the Shady Valley government.
Recommended Citation:INVOLUNTARY EXCHANGE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: November 30, 2023].
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GREEN LOGIGUIN
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Today, you are likely to spend a great deal of time searching for rummage sales seeking to buy either a how-to book on fixing your computer, with illustrations or several magazines on computer software. Be on the lookout for letters from the Internal Revenue Service.
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This isn't me! What am I?
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The New York Stock Exchange was established by a group of investors in New York City in 1817 under a buttonwood tree at the end of a little road named Wall Street.
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"Consult not your fears, but your hopes and your dreams. Think not about your frustrations, but about your unfulfilled potential. Concern yourself not with what you tried and failed in, but with what it is still possible for you to do. " -- Pope John XXIII
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LIBOR
london Inter-Bank Offered Rate
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