Economics Chapter 7 Test

A product that consumers see as the same, regardless of the producer

• Differentiated product
• Similar product
• Standardized product

Which of the following is the best example of a standardized product?

• Car
• Boots
• Cereal
• Skim Milk

A business that cannot set the prices itself, but accepts the market price

• Price maker
• Price taker
• Monopoly
• Cartel

Only one seller sells a product for which there are no close substitutes

• Monopoly
• Oligopoly
• Monopolistic competition
• Perfect competition

Exists when many sellers offer similar, but not standardized products

• Monopoly
• Oligopoly
• Monopolistic Competition
• Perfect Competition

The least competitive market structure

• Monopoly
• Oligopoly
• Monopolistic competition
• Perfect competition

Formal organization of sellers that agree to act together to set prices and limit output

• Monopoly
• Price maker
• Oligopoly
• Cartel

Exists when there are no other producers within a certain region

• Natural monopoly
• Government monopoly
• Technological monopoly
• Geographic monopoly

Exists when there are economies of scale

• Natural monopoly
• Government monopoly
• Technological monopoly
• Geographic monopoly

Postal service

• Natural monopoly
• Government monopoly
• Technological monopoly
• Geographic monopoly