Unit 2 review (Economics)

Quanitity Demanded = Quantity Supplied you have a 

• Equilibrium
• Disequilibrium
• Surplus
• Shortage

Which market has no competition?

• perfect competition
• oligopoly
• monopoly
• monopolistic competition

Why is a demand curve downward sloping?

• because it reflects the desire, ability, and willingness of consumers
• because of the natural elasticity of the market
• because quantity demanded increases as price decreses
• because it shows how increasing incentives changes demand

For which product is demand likely to be the most elastic?

• a product with no substitutes
• a product with inadequate substitutes
• a product with many inadequate substitutes
• it is impossible to tell

Which of these describes an effect of increased government regulation on producers?

• It shifts their market supply curve to the right.
•  It prompts them to increase output at all possible prices.
• It encourages production by requiring the use of new technology.
• It shifts their market supply curve to the left.

Under perfect competition,

• products are similar but not identical.

• numerous restrictions prevent firms from entering the market.

• no seller can sell a product above the prevailing market price and products are identical

• a single seller can affect price and their is a small number of buyers and sellers

Which market structure is BEST indicated by the cell phone market?

• monopoly

• pure competition

• oligopoly

• natural monopoly

A market where brand-name loyalty is more important than product differentiation.

• Perfect Competition

• Pure Monopoly

• Monopolistic Competition

• Oligopoly

A barrier to entry is

• an economic term for economies of scale

• illegal in most markets

• anything that prevents new firms from entering the market

• a factor that increases competition

A monopoly is a market with

• many suppliers

• no barriers to entry

• many substitutes

• one supplier