|
|
PRICE FIXING: An agreement by two or more firms in an industry to charge the same price and avoid competing with each other. This is one of the methods businesses use to practice collusion or form a cartel. It is, by the way, against antitrust law.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 20: Federal Reserve System | Unit 2: What It Does
|
Page: 4 of 20
|
The Fed is responsible for ensuring that the economy has the proper amount of money in circulation.- In the old days, governments controlled the money supply by printing and minting money.
- In modern times, with bank checkable deposits in the money supply, the Fed controls money by controlling banks.
Two reasons: - First: Too much money causes inflation and too little money leads to recession and unemployment. The challenge is to keep enough money in circulation.
- Second: Money is absolutely essential in a modern complex economy. Faith in the value of fiat money is best provided by a centralized, national government that has the authority to ensure the value of money.
|
|
|
|
|
|
|
LOSS MINIMIZATION RULE A rule stating that a firm minimizes economic loss by producing output in the short run that equates marginal revenue and marginal cost if price is less than average total cost but greater than average variable cost. This is one of three short-run production alternatives facing a firm. The other two are profit maximization (if price exceeds average total cost) and shutdown (if price is less than average variable cost).
Complete Entry | Visit the WEB*pedia |
|
|
GRAY SKITTERY
[What's This?]
Today, you are likely to spend a great deal of time wandering around the downtown area hoping to buy either a video camera with stop action features or one of those memory foam pillows. Be on the lookout for broken fingernail clippers.
Your Complete Scope
This isn't me! What am I?
|
|
|
Francis Bacon (1561-1626), a champion of the scientific method, died when he caught a severe cold while attempting to preserve a chicken by filling it with snow.
|
|
|
"The greatest barrier to success is the fear of failure." -- Sven Goran Eriksson, writer
|
|
RJE
RAND Journal of Economics
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
