Market Structures
Lots of buyers and sellers who are well informed, but products are slightly different.
Monopolistic Competition
Demand for a good is greater than the availability of the good or service.
Scarcity
Along a supply curve, if the price of oil falls, what will happen to the quantity of oil supplied?
It will decrease
It is the dollar value of all of the goods and services produced in a country within a year.
Gross Domestic Product (GDP)
The ____________ is the percentage of people in the civilian labor force who are not working, but currently looking for work.
unemployment rate
A few very large sellers dominate the industry
Oligopoly
Quantity demanded is greater than the quantity supplied.
Shortage
If the price of cars falls, are carmakers likely to make_____.
Fewer cars
increase in the cost of living as the price goods and services rise.
Inflation
If a recession becomes severe, it will turn into a _________, when large numbers of people are out of work, there are shortages, and capacity in manufacturing is exceeded.
Depression
Only one seller of a particular product dominates the market with at least 75% control
Monopoly
Government controls the means of production, Little individual influence
Command Economy
When the price of a good increases, the quantity demanded….
Decreases
This is when the government samples prices each month for about 400 products commonly used by consumers.
Consumer Price Index (CPI)
______ is nominal GDP adjusted for inflation.
Real GDP
A government agency that is the sole provider of a good or service and competition is prohibited by law.
Government Monopoly
Private individuals control the factors of production, Individual freedom
Market Economy
When will people search for substitutes for oil?
When the price of oil is high
The rate of interest that you owe on an amount borrowed.
Interest Rates
____________ is the total value of all goods and services produced in a given time period, usually quarterly or annually.
Nominal GDP
Occurs when one company controls manufacturing methods or has the exclusive rights to produce it.
Technology Monopoly
Mix of Command and Market Economies
Mixed Economy
With an Increase in supply the supply curve with move __________.
down and to the right
_______ illustrates the alternating intervals of growth and decline, tracking the GDP.
The Business Cycle
A ______ takes place when the Real GDP goes down for six months straight.
Recession