Demand, Supply, and Prices
Market Structure
Types of Businesses
American Free Enterprise System
100
A situation that occurs when quantity demanded and quantity supplied at a particular price are equal.
What is market equilibrium?
100
When there are many buyers and sellers of standardized products.
What is perfect competition?
100
When a business is owned and managed by a single person.
What is sole proprietorship?
100
Another name for capitalism.
What is free enterprise system?
200
When quantity supplied is greater than quantity demanded.
What is a surplus?
200
When there is a single seller of a product with no close substitutes.
What is monopoly?
200
When two or more owners share the management of the business, profits, and full liability.
What is a partnership?
200
What is the biggest factor that gets many entrepreneurs to enter the market?
What is profit motive?
300
When quantity demanded exceeds quantity supplied.
What is a shortage?
300
When economies of scale makes it most efficient for a single company to provide the service.
What is a natural monopoly?
300
A business that can raise money by selling stock.
What is a corporation?
300
Pollution from a factory that affects people living nearby.
What is negative externality?
400
Legal maximum price that producers can charge for certain goods or services.
What is a price ceiling?
400
When there are many buyers and sellers of similar but differentiated products.
What is monopolistic competition?
400
When two or more businesses consolidate.
What is a merger?
400
Vaccinations are an example of this.
What is positive externality?
500
A legal minimum amount that may be paid for a particular good or service.
What is a price floor?
500
When there are only a few sellers for many buyers.
What is oligopoly?
500
When two companies join together that sell similar goods and services.
What is a horizontal merger?
500
Social security, unemployment compensation, and disability coverage.
What is transfer payments?
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