Markets

Multiple Choice

The definition of "the market" is...

• anywhere that buyers and sellers make economic transactions

• specifically the stock market

• a place that does not focus on economic transactions at all

• a place where only bartering occurs

Multiple Choice

The first type of market structure that we discussed was...

• monopolistic competition

• oligopoly

• pure (perfect)

  competition

• monopoly

Multiple Choice

Sellers determine the ______.

• price only

• supply

• demand

• market shift

Multiple Choice

An example of an oligopoly market was...

• Video game companies creating new games and technologies.

• Banks supplying loans at different interest rates

• AT&T owning telephone lines

• The mail market: USPS, FedEx, UPS

Multiple Select

The law of demand states that as prices _____, demand of things will ____.

(Hint: TWO of these are correct)

• rise, rise

• rise, fall

• fall, fall

• fall, rise

Multiple Choice

Is it possible to find a perfectly competitive market?

• yes

• no

Multiple Select

Select all of the correct determinants of demand:

• Price of an item

• Preferences or trends

• Technology

• expectations

Multiple Select

On a supply and demand graph, the slope/trend of the DEMAND lines is which direction?

• Down/Negative

• Up/Positive

Multiple Select

A monopoly is where ____ _____ control(s) the market.

• one firm

• multiple firms

• infinite firms

• three/four firms

Multiple Select

The point where a supply and demand chart intersect is called _____ _____.

• law of demand

• market equilibrium

• law of supply

• the market

Multiple Select

Markets that fall under this structure can increase their prices due to innovation.

• Oligopoly

• Pure Competition

• Monopoly

• Monopolistic Competition

Multiple Select

How many types of market structures are there?

• 1

• 2

• 3

• 4

Multiple Choice

From your notes, what was an example of the "law of supply?"

• Apple makes a new iPhone, so they can charge more for it

• As the price of gum increases, sellers will produce more

• AT&T has to sell part of their business because of antitrust laws

• The price of shoes drops, so people want to buy them more

Multiple Choice

Monopolies are undesirable because there is __ _____, and they are _____.

• a lot of competition, very efficient

• some competition, somewhat efficient

• no competition, inefficient

• infinite competition, inefficient

Multiple Choice

What is the definition of a shortage?

• More goods than people can consume

• Not enough goods for people to consume

• Just enough goods for enough people

• No goods or people