economic and non state institutions

• Reciprocity - exists when there is an exchange of goods or labor between individuals in a community.

  This would include direct barter or simultaneous exchange of goods, or gift exchange where the return for goods given or labor rendered is delayed
• Transfer - entails a redistribution of income that is not matched by the actual exchange of goods and services.
• Redistribution - combination of the features of transfer and reciprocity, where the economic exchange involves the collection of goods from members, the pooling of these goods, and then the redistribution of these goods among the same members.
• market system - a type of economic system that allows the free flow of goods between and among private individuals and firms with very limited participation from the government.
• invisible hand - integrates both the idea of self-interest and competition in the market place, which brings about a socially optimum result even in the absence of government intervention.
• market - is a mechanism and not necessarily a place that brings buyers and sellers together for the desired transaction
• Specialization - is another requirement for a market economy. Critical to the market economy is the ability to produce goods and services efficiently. It is easier to produce goods more efficiently with specialization.
• Barter - or the swapping of goods for goods is the traditional means of exchange
• Market transaction - involves parties who sell their goods and services in exchange for cash from consumers.
• Market economy - is one where the production, distribution, and consumption of goods and services operate through these forms of exchange.
• Free-market economy - is one where the price of a good or service is determined by the forces of supply (the available level of products or services provided by producers or sellers) and demand (the level of willingness of consumers to purchase).
• Labor - is also considered a commodity, except that in this case, the sellers of the service are the workers, while the consumers are the factories and the producers.
• state, through the government, comes in to regulate the prices of the service, which technically is in the form of the wages the workers earn
• The minimum wage, which is determined by regional wage, is the below which no employer would allow paying their workers.
• The state is a political body the exercises monopoly of violence or legitimate control overuse of force within its territory
• The bank is a financial institution that lends money to both public as well as private organizations
• Corporation refers to the aboard category of non-state organizations representing a company or group of people that engage in a lawful activity about a public function, such as the provision of good service to the larger society.
• A stock corporation is where ownership is through stockholders who own particular shares.
• A Nonstock corporation is owned by members that join the organization.
• Cooperative or coop refers to an autonomous association whose membership is voluntary towards the attainment of common economic, social, and cultural needs or aspirations
• A Trade or Labor Union refers to an organization of workers whose main objective is to protect the welfare of its members. It does this by negotiating collectively with employers for better compensation packages and benefits, improved safety standards, and better working conditions.
• Human specialization is called the division of labor. Specialization contributes to efficiency by taking advantage of the differences in every person’s abilities.