Market structure
Types of Business
Supply & demand
Circular flow
Misc
100
How many sellers are in a monopoly?
One Seller
100
Describe a rational economic decision. Marginal benefit should exceed?
Marginal benefits exceed marginal costs.
100
What economic system provides these?
- Economic freedom
- Economic growth
- Economic efficiency
Market Economy
100
Which economic system does the government control all resources?
Command Economy
100
These are obstacles that make it difficult for new businesses to enter a market
Barriers to entry
200
What is the market structure do buyers and sellers deal with identical products?
Perfect competition
200
What is a disadvantage of having a partnership type of business
Sharing all of the profits with a partner.
200
Law of demand says when Price goes down, demand Goes?
Up!
200
The law of Supply says when price goes up, Supply goes?
Up as well
200
The government establishes an effective price ceiling for a gallon of milk. What will be the result of this price ceiling?
A shortage
300
Which market will Jansen and Brooke be participating in when they go out to dinner? According to the circular flow
Product market
300
A Price floor creates a shortage? True or false
False
300
In the circular flow when the household provides the factors of production when do they get in exchange?
Income.
300
Where do businesses sell their products? what is the name of that place in the circular flow called?
Product market
300
What 2 places on the circular flow receives Goods & services?
Household & Product market
400
Which market structure does this best illustrate when there are large number of firms, barriers to entry are low, products are similar but not exactly the same.
monopolistic competition
400
Which market structure has very strict price controls & high barrier to entry?
Monopoly
400
Is Income & taste a determinant of Demand? True or False
True
400
Give another word for Drought?
Shortage
400
A Price floor is where relative to the equilibrium line and creates a what?
Above the Equilibrium line and create a surplus
500
What happen to the price and quantity of the good exchanged due to the shift in the demand curve?
The price will decrease & the quantity will also decrease
500
Economic security is a characteristic of a command economy. True or false?
True
500
What will be the result if the price was set at P1?
Price floor; this would create a surplus
500
What does number 2 and 4 represent on the circular flow diagram.
Goods and services
500
Which market structure has the characteristics of the 3rd row?
oligopoly