By the mid-1950’s, automobiles and drive-in restaurants were part of the American lifestyle. McDonald’s successfully met the need for fast service, low-cost meals, convenience, and a child-friendly atmosphere.
In a market with only a few large firms, mutual interdependence is the reality that the actions of one firm affect the choices and actions of the other firms. Mutual interdependence is associated with oligopolistic markets—markets with barriers to entry, few competitors, and either similar or differentiated products.
Mutual funds, organized as CORPORATIONs and regulated by the SECURITIES AND EXCHANGE COMMISSION, are major FINANCIAL INTERMEDIARIES in today’s world. They accept funds from savers by selling them shares and then use the proceeds to invest in various financial securities ranging from short-term debt instruments to long-term BONDS and stocks.
Multilevel marketing (MLM), also known as network marketing, is a home-based marketing system based on selling to friends and recruiting others to sell and distribute the company’s products. In the United States, multilevel marketing is a multibillion-dollar industry.
A most-favored-nation (MFN) clause in an international trade agreement requires participants in the agreement to offer all other participants treatment as favorable as that extended to any other country. Therefore most-favorednation clauses, with some exceptions, eliminate discrimination among countries on the basis of TARIFFs and duties and provide freedom for INVESTMENT.
A mortgage is a loan secured by real property in which the lender obtains the legal right to liquidate (sell) the property to recover its funds in the event the borrower fails to make payment on the loan. The purchase of a home is often a consumer’s single largest purchase in his or her life.
Moral suasion is the use of influence to affect behavior. Business moral suasion is most often associated with public statements by individuals with authority, ADVERTISING campaigns, and educational programs. President John F. Kennedy attempted moral suasion in his classic statement, “Ask not what your country can do for you. Ask what you can do for your country.”
Moody’s Investors Service (along with STANDARD & POORS’S Corporation) ranks BONDS according to their DEFAULT risk. Investors want information in order to assess the RISK versus return of financial securities. Moody’s Investor Service’s widely used rating system provides investors with default risk information.
The Montreal Protocol (1987) is an international agreement that controls the production and CONSUMPTION of substances that cause ozone depletion. The full title of the agreement is the Montreal Protocol on Substances that Deplete the Ozone Layer. Ozone (three oxygen atoms, chemical formula O3) is a rare but important compound found in the earth’s atmosphere.
A monopoly is a MARKET STRUCTURE where there is one producer, no close substitutes, and considerable BARRIERS TO ENTRY. In the United States, PUBLIC UTILITIES (electricity, telephone, cable, and water) are monopolies. These and many other monopoly markets are created by a variety of conditions.
Monopolistic competition is a MARKET STRUCTURE in which there are many producers of differentiated products and ease of entry into the market. Monopolistic competition is similar to PERFECT COMPETITION, but with each firm selling slightly different PRODUCTs or SERVICES. In the United States, many retail clothing, food, sporting goods, and lodging markets are characterized by monopolistic competition.
The money supply in an economy is all the MONEY held by the nonbank public at any point in time and is important in the determination of MONETARY POLICY. Money is anything people will accept as a means of payment. Most consider the money supply to be the sum of all the coins and currency circulating in the economy, but in fact money is anything accepted as a medium of exchange.
Money is anything people will accept as a means of payment for goods or services. Money’s primary function is to facilitate exchanges and is infinitely easier to use than BARTER, which requires one person to want what another person has to offer in exchange. To find a person who is willing and able to make a barter exchange often takes considerable time and effort.
Monetary policy is controlling the MONEY SUPPLY to achieve policy makers’ goals. Most often these goals include ECONOMIC GROWTH with stable prices. In the United States, the primary goal of monetary policy is to attain and maintain price stability. Monetary policy is based on monetarism, a school of macroeconomic thought emphasizing the impact of changes in the SUPPLY of MONEY on the aggregate economy.
In 1952 Yale professor Harry Markowitz published a study now regarded as the origin of the modern portfolio theory (MPT). His work revolutionized the INVESTMENT world and won him a Nobel Prize.
A mixed economy is an economic system containing both state and private control of RESOURCES and output. Politicaleconomic systems can be characterized along a continuum ranging from pure SOCIALISM to laissez-faire CAPITALISM.
A mission statement is a business or organization’s declaration of purpose—i.e., why they exist. It generally defines the key values and guiding principles for the organization. Written for a variety of audiences, including customers, employees, and investors, statements are usually short (30–60 words) and describe the organization’s TARGET MARKET, philosophy, and public image.
The minimum wage is based on a federal law that sets the lowest wage an employer can pay an employee. In the United States, the FAIR LABOR STANDARDS ACT (FLSA), passed in 1938 and amended many times since then, is a major labor-management law regulating wages.
Middle managers are the people in an organization whose authority and LEADERSHIP lie below top MANAGEMENT and above first-level supervisors. In traditional settings, the middle manager is responsible for developing operational plans and procedures to implement the broader goals, objectives, and strategies of top management.