Economics Unit 2 Review

High prices are signals for producers to produce __________and for buyers to buy __________.

• more; the same amount
• less; more
• the same amount; less
• more; less

In a competitive market, if the price is too high, a temporary __________appears until the price goes down.

• Shortage
• price ceiling
• surplus
• price floor

The __________ Act sought to do away with restraints and monopolies that hindered competition or made competition impossible.

• Sherman Antitrust
• Clayton Antitrust
• Federal Trade Commission
• Robinson-Patman

Which type of merger is the government least likely to block?

• One that creates more barriers to entry in a market       
• One that increases market concentration by a few firms
• One that eliminates possible competitors
• One that results in a larger, more efficient company

The purpose of __________ is to provide the market with enough data to prevent market failures due to inadequate information.

• public good
• public disclosure
• market structure
• market disclosure

When sizable deviations from one or more of the conditions required for perfect competition take place, __________ occur.

• oligopolistic competitions
• market successes
• profits
• market failures

Which of these terms is most closely connected to sellers’ use of advertising?

• non-price competition
• Antitrust laws
• standardized products
• perfect completion

The actual price changes in any given market are likely to be greater if both supply and demand are __________.

• cross elastic
• unit elastic
• elastic
• inelastic

Start-up costs to enter a market ruled by monopolistic competition are about the same as start-up costs to enter an oligopolistic market.

• True
• False

Very few manufacturing industries in the United States are oligopolistic.

• False
• True