MARKET STRUCTURES
MONEY
PRICE CONTROLS
TYPES OF GOODS
RANDOM MIX
100
There are many, many firms in this type of industry
PERFECT COMPETITION
100
These are the 3 functions of money in economic terms
MEDIUM OF EXCHANGE, UNIT OF ACCOUNT, AND STORE OF VALUE.
100
The minimum wage is an example of what?
PRICE FLOOR
100
Goods and services that we tend to consume together
COMPLEMENTARY GOODS
100
Change in number of producers, change in technology, and change in input prices are examples of what?
DETERMINANTS OF SUPPLY
200
There is just one firm in this industry
MONOPOLY
200
Money does not rot or go bad, it holds its value over time. This is which function of money?
STORE OF VALUE
200
Apartment rent controls are an example of what?
PRICE CEILINGS
200
Goods and service we tend to consume in place of one another are what?
SUBSTITUTE GOODS
200
Change in consumer income, change in number of buyers, and change in consumer expectations are examples of what?
DETERMINANTS OF DEMAND
300
Firms in this industry often collude to get the most profitable price for themselves
OLIGOPOLY
300
Money is a way for us to understand the relative cost between things we buy and sell. This is which function of money?
UNIT OF ACCOUNT
300
In a NON-BINDING PRICE CEILING which is higher equilibrium price or the price ceiling?
THE PRICE CEILING (because it is non-binding, that means the equilibrium price is not affected)
300
Phones and phone cases are complementary goods. The price of phones goes up by 35%, what will happen to the DEMAND phone cases?
DEMAND FOR PHONES CASES WILL GO DOWN.
300
The process through which new products are constantly created pushing out older products from the market.
CREATIVE DESTRUCTION
400
There is total control of price by an individual firm in this type of industry
MONOPOLY
400
Money is accepted by people when buying goods and services. It is the common currency. This is which function of money?
MEDIUM OF EXCHANGE
400
In a BINDING PRICE FLOOR, which is higher the equilibrium price or the price floor?
THE EQUILIBRIUM PRICE (binding means that the equilibrium price will be affected...it is above the price floor)
400
Beef is a normal good. Your income decreases, what will happen to the demand for beef?
IT WILL DECREASE (If a good is normal, the demand for it follows income changes)
400
These people take on significant financial and social risk by investing in new ideas or starting new businesses
ENTREPRENEURS
500
There are many firms in this type of industry and an individual firm has just some control over price
MONOPOLISTIC COMPETITION
500
While money has value for us as individuals, for the government it represents this
DEBT
500
If the price ceiling is binding what does it result in?
A SHORTAGE.
500
Used cars are in inferior good. If income decreases, what will happen to the demand for used cars?
DEMAND FOR USED CARS INCREASES (instead of buying new cars, people will buy used cars)
500
What sport did Mr. Sun compete in when he was younger?
FIGURE SKATING
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