Market Structures
The main economic actor in this market structure has sole pricing power.
What is a monopoly?
An illegal organization of competitors who agree to coordinate pricing and production decisions
What is a cartel?
The ability of a single firm to control prices and total market output.
What is market power?
When a country can produce more of a good than another, they have a(n) _________ ___________
What is an absolute advantage
Tariffs, customs duties, import quotas, and embargoes are all examples of this.
What are trade barriers?
The amount of pricing power an economic actor has in a purely competitive market structure.
What is none.
The illegal agreements to set prices and production levels.
What is collusion?
The elimination of government rules.
What is deregulation?
When a country can produce a product at a lower opportunity cost they have a(n) __________ ________
The two main types of tariffs.
What are revenue and protective tariffs?
The market structure where the economic actors compete via pricing decisions
What is oligopoly?
What is the Prisoner's Dilemma?
This occurs when former competitors join into a single business entity.
What is a merger?
Trade allows for countries to _________ in the production of goods with the lowest opportunity cost
What is specialization?
Protecting jobs, infant industries, and enhancing national security are arguments in favor of this view of trade policy.
What is protectionism?
Economic actors in this market structure compete by product differentiation.
What is monopolistic competition?
The market leader that sets price and production levels that competitors within the industry must follow.
What is the price leader?
The category of laws aimed at preventing one firm from gaining 'too much' market power.
What are antitrust laws?
The difference between a country's total number of exports and total number of imports is the...
What is pure competition?
To avoid this, oligopolistic competitors keep prices low.
What is a price war?
This is one way the government regulates competition. (3 possible answers)
What is breaking up monopolies, enforcing antitrust laws, or block mergers.
The agreement where European nations pegged their currency to the dollar.
What is Bretton-Woods?
This is a regional trade organization. (Name one)
USMCA, The European Union, ASEAN, FTAA