Eco-Ch 7 Test

In a market economy with perfect competition, sellers ________

• control prices

• enter and exit the market freely

• join with other sellers to influence prices

• decide prices

In a market economy with imperfect competition sellers __

• are always well informed of market conditions

• never have any control over price

• offer only standardized products

• sometimes join with other sellers to influence prices

A market structure in which only one seller sells a product for which there are no close substitutes is called a ______

• cartel

• monopoly

• oligopoly

• trust

Monopolists are able to control prices because they have ____

• much competition and there are many substitutes for their products

• much competition and there are no close substitutes for their products

• no competition and there are many substitutes for their products

• no competition and there are no close substitutes for their products

A monopoly in which the costs of production are lowest when only one firm provides output is called ____

• geographic monopoly

• government monopoly

• natural monopoly

• technological monopoly

_________ is an economic model of the nature and degree of competition among businesses in the same industry.

• Market structure

• Market Equilibrium

• PPC

• None

In ________________ there are many buyers and sellers of standardized products.

• Perfect competition

• Imperfect competition

• Market system

• Price System

In ___________there are only few sellers for many buyers. It is hard to enter such a market due to high ___________

• Perfect Competition, input-costs

• Monopolistic competition, input-costs

• Monopoly, start-up costs

• Oligopoly, start-up costs

A ___________ is a group of sellers that acts together to set prices and limit output.

• Labor Union

• Professional Associations

• WLO

• Cartel

A ___________ is anything that makes it difficult for a business to enter a market.

• License

• Quality Control

• Perfect Competition

• Barrier to entry