What Is Fiscal Policy? Full word page simple summary (Please no plagiarism)

Case Summary

Visa and MasterCard are the two largest providers in the market for general purpose credit card network products and services. Together, Visa and MasterCard account for 75% of the dollar volume of transactions, and account for 86% of the number of general purpose cards issued. American Express, Discover/Novus, and Diners Club are the significant competitors in the general purpose card market. Both Visa and MasterCard are joint ventures (associations) that are owned and operated by the member banks that issue cards and provide card acceptance services. The member banks have an interest in both Visa and MasterCard (known as duality) and have representatives serving on the board of directors or important committees of both Visa and MasterCard.

Since the member banks of Visa and MasterCard have a significant interest in both Visa and MasterCard, they have little incentive or desire to compete directly against one another. The member banks have refused efforts by MasterCard management to develop its brand through marketing campaigns. The banks felt that this action would hurt the Visa brand, which the banks have a stake in. They have also not supported new product development, unless the new development was available to both Visa and MasterCard. In addition to avoiding competition between brands, the member banks have prohibited its banks from issuing competing credit cards, such as American Express and Discover/Novus. They have also worked jointly to discourage merchant acceptance of competing cards and access to ATMs for cash advances.

Discussion Questions

1. What is the ownership structure of Visa and MasterCard? How is the management set up to reflect this?

2. Who are the competitors for Visa and MasterCard? What are the barriers to entry for new competition?

3. How does the dual ownership of Visa and MasterCard lessen competition between the two?

4. How have Visa and MasterCard worked to restrain its competitors from competing in the market?

5. What evidence is there that Visa and MasterCard would compete more aggressively without duality?

Using a graph, explain why a competitive market in which the price is lower than the market equilibrium is not Pareto efficient.

marks =

• Was Pareto Efficiency defined?
• Was the graph correct?
• Was the answer correct?
• Was the explanation detailed?

1. Describe the difference between intentional torts against persons and intentional torts against property. Include a minimum of three categories of both types of torts, and provide an example of each one in your own words.  

Countries policy suggestion about covid-19 : Policy suggestions (Fiscal policies, Monetary policies, Financial regulation policies, Social insurance policies, Industry policies, Trade policies)

according to what countries prefer

If you felt it was necessary to implement contractionary fiscal policy, would you choose to increase taxes or decrease government spending? Why?

1. What is the primary tool of monetary policy?

   		required reserve ratio
   		discount rate
   		Temporary Auction Funds
   		Open Market Operations

5 points   

QUESTION 2

1. What is the policy goal for unemployment in the U.S.?

   		zero
   		zero cyclical unemployment
   		unemployment equal to inflation rate
   		low unemployment in urban areas

5 points   

QUESTION 3

1. What is the policy goal for inflation in the U.S.?

   		zero
   		zero inflation on food items
   		low unemployment that is consistent with full employment level of unemployment
   		low inflation in college tuition and other education costs

5 points   

QUESTION 4

1. Which one of the following types of economic shock could send an economy into a recession?

   		unexpected tax decrease
   		interest rate cut
   		financial crisis
   		decrease in oil prices

5 points   

QUESTION 5

1. Who controls monetary policy in the U.S.?

   		The Fed
   		Congress
   		President
   		Supreme Court

5 points   

QUESTION 6

1. Which one of the following is an example of an expansionary monetary policy tool?

   		Buy bonds
   		Decrease taxes
   		Increase discount rate
   		Increase government spending

5 points   

QUESTION 7

1. Which one of the following is an example of a contractionary monetary policy tool?

   		Buy bonds
   		Increase taxes
   		Increase required reserve ratio
   		Decrease government spending

If there was a way to assign pollution to the firm/ individual who’s responsible for it and make them financially responsible, it would?

How will reducing the government budget deficit make future generations better off?  How could reducing the government budget deficit harm future generations?

Describe how the 5Cs, STP, and the 4Ps fit together to develop a marketing plan.

Why don't monopolies innovate as much as competitive firms?

1. Using an example, explain how exchange rates influence business activities?

2. Explain the concept of devaluation, and explain the effect devaluation has on the price of a country's imports.