Upload
rosamond-boyd
View
218
Download
0
Embed Size (px)
DESCRIPTION
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
Citation preview
Ch. 7.2 Notes : Market Failure
I. 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 strategizing together to set price
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
C. Workers not willing to move = workers, businesses must be free to move to
areas where they will succeed
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
E. Too many Public Goods = goods & services that are provided through tax dollars
California’s Annual Costs to Incarcerate an Inmate in Prison2008-09
Type of ExpenditurePer Inmate
CostsSecurity $19,663 Inmate Health Care $12,442Medical care $8,768Psychiatric services 1,928Pharmaceuticals 998Dental care 748 Operations $7,214Facility operations (maintenance, utilities, etc.) $4,503Classification services 1,773Maintenance of inmate records 660Reception, testing, assignment 261Transportation 18 Administration $3,493 Inmate Support $2,562Food $1,475Inmate activities 439Inmate employment and canteen 407Clothing 171Religious activities 70 Rehabilitation Programs $1,612Academic education $944Vocational training 354Substance abuse programs 313 Miscellaneous $116 Total $47,102
9 million people in jail worldwide2.2 million of them are in U.S. jails (25%)170,000 are in CA jails
CH. 7.3 fill in Notes : Agencies and Laws
• 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
F. EPA = protects environment G. NRC = regulates nuclear power industry
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