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Markets
Supply & Demand
Circular flow
Market Structures
Types of Businesses
100
An institution that brings together buyers ("demanders") and sellers ("suppliers") of particular goods, services, or resources.
What is a market?
100
A schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time.
What is demand?
100

In the circular flow model, households provide this to businesses in the factor market.

What is labor?

100

This market structure features many buyers and sellers, identical products, and no barriers to entry.

What is perfect competition?

100

This is the simplest and most common form of business ownership, run by one individual.

Sole proprietorship

200
This effect indicates that a lower price increases the purchasing power of a buyer's money income, enabling the buyer to purchase more of the product than she or he could buy before.
What is the income effect?
200
A schedule or curve showing the amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period.
What is supply?
200

In return for labor, households receive these in the circular flow model.

What is wages?

200

In this market structure, a single firm controls the entire market and sets prices without competition.

What is monopoly?

200

In this type of business, two or more people share ownership and responsibilities.

What is partnership

300
In any specific time period, each buyer of a product will derive less satisfaction from each successive unit of the product consumed.
What is the law of diminishing marginal utility?
300
Preferences, income, number of buyers, price of related goods, and consumer expectations.
What are the non-price determinants of demand?
300

In the product market, households give businesses money in exchange for these.

What are goods and services?

300

This market structure involves a few large firms that dominate the market and may collude to set prices.

What is oligopoly?

300

This type of business offers limited liability to its owners and is legally separate from them.

What is a corporation?

400
This effect suggests that at a lower price buyers have the incentive to substitute what is now a less expensive product for similar products that are now relatively more expensive.
What is the substitution effect?
400
As price rises, the quantity supplied rises; as price falls, the quantity supplied falls.
What is the law of supply?
400

This sector collects taxes from households and businesses and provides public goods and services.

What is government?

400

This type of competition involves many firms selling similar but not identical products, such as restaurants or clothing brands.

What is monopolistic competition?

400

One major advantage of a corporation over a sole proprietorship is this protection from personal financial loss. 

What is a limited liability, ease of raising capital or specialization

500
Graphically, the intersection of the supply curve and the demand curve for a product indicates this.
What is the market equlibrium?
500
This exists when the demand for a good or service exceeds the supply of the good or service.
What is a shortage?
500

If households suddenly reduce their spending in the product market, what is one likely effect on the rest of the circular flow model?

What is a decrease in business revenue, leading to lower wages or employment in the factor market?

500

Name two key characteristics that distinguish an oligopoly from monopolistic competition.

What is (list 2) numbers of firms, barriers to entry, level of price control, interdependence?

500

What is the main reason partnerships fail

What is interpersonal conflict