Types of Economies
This economy relies on customs, tradition, and bartering.
What is a traditional economy?
what kind of market: One firm, unique product, high barriers to entry
What is a monopoly?
This 1890 law outlaws contracts and conspiracies that restrain trade.
What is the Sherman Antitrust Act?
The law that says as price rises, quantity demanded falls.
What is the Law of Demand?
Toys are sold out during holiday season; stores can’t meet demand.
Shortage
The government controls all economics in this system.
What is a command economy?
What kind of market: Many firms, Similar products, not perfect substitutes some ability to set price.
What is monopolistic competition
This 1914 law prohibits price discrimination, exclusive dealing, and certain mergers.
What is the Clayton Antitrust Act?
When quantity supplied is greater than quantity demanded at the current price.
What is a surplus?
Price set too high so many goods remain unsold.
Surplus
Company's and consumers make decisions in this system with little government intervention.
What is a market economy?
what kind of market: Few firms, Dominated by a few company's, often barriers to entry.
What is an oligopoly?
What is predatory pricing?
This practice involves temporarily lowering price below cost to drive rivals out.
When quantity demanded is greater than quantity supplied at the current price.
What is a shortage?
A town with only one water company and natural barriers to entry is an example of this.
What is a monopoly
This system mixes government regulation with private markets.And a example
What is a mixed economy?
USA
what market structure has Many company's, identical products, and no price-setting power.
What is perfect competition?
Give an example of a monopoly and describe how it works?
Answers vary
The point where quantity supplied equals quantity demanded is called this.
What is equilibrium?
Two firms agree to combine, what are they forming and is this legal?
Monopoly and no
Cuba historically follows this type of economy.
What is a command economy?
What do Monopoly's do to get around the laws
Limit entry, buy out company's, limit resources
If Monopoly's Are illegal why do they still exist
finding loopholes, higher the best lawyers, Use political gain
Consumers’ desire for a good plus willingness and ability to pay defines this term.
What is demand?
Selling the same product at different prices to different buyers can violate this act / law if unjustified.
What is the Clayton/ Sherman Act