Market Structures
This structure involves a single seller controlling the entire market supply.
Monopoly
What is market failure?
When a given market is not producing the optimal amount of benefit.
This financial institution accepts deposits and provides loans to individuals and businesses.
Banks
These are goods that anyone can use, and do not have to pay for. (National Defense, Police & Fire)
Public Goods
What kind of industry is the closes thing we have to perfect competition in our world?
Agriculture (Corn, Wheat, ect.)
This source of market failure occurs whenone or a few firms have total dominance over an industry, and choose to underproduce.
Market Power
What is the primary goal of a Corporation?
Maximize profit for shareholders
This term refers to obstacles that make it difficult for new firms to enter a market.
Barriers to Entry
This structure is defined by differentiated products and heavy brand competition.
Monopolistic Competition
Unintended side effects of economic activity, that can be either positive or negative
Externalities
This organization helps workers bargain with corporations, and stops them from being exploited.
(Name one for +100 points)
Labor Unions
A _______________ externality causes overproduction, as it creates an unforseen cost.
Negative
In a perfect competition market structure, firms are known as price _____________ because they have little influence on market prices.
Takers
Mr. Kontos is selling a used car, which has MANY problems. He knows this, but the buyer does not. Which source of market failure is on display?
Information Asymmetry
This enterprise is owned and democratically controlled by its members.
Co-operative
This term describes two or more firms in an Oligopoly communicate, and work together to manipulate the market to keep prices high.
Collusion
The main hallmark of an Oligopoly is ______________ between firms. This means firms are reliant on each other, as they need to remain competitive.
Interdependence
This "problem" is a market failure that occurs when individuals consume resources or public goods without paying for them, leading to underproduction or overconsumption
The Free Rider Problem
The government can intervene in a failing market in 5 different ways. Name them
Do nothing, Create a Tax, Create a Subsidy, Regulate the Industry, and provide the good themselves.
Public goods are non-_______________ and non-_________________. This means they are accessible to everyone, and one person using it does not stop another from using it. (Double Points)
Non-Excludable, and Non-Rivalrous