Ch 2.2 Government & Economy Vocab

is how a market is organized based on the number of businesses competing for sales in an industry

• Monopoly

• Competition

• Monetary Policy

• Market Structure

is a market structure with a small number of businesses selling the same or similar products

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

characterized by a large number of businesses selling the same products at the same prices

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

when a lower price is the main reason for customers to buy from one business over another

• Market Structure

• Monopolistic Competition

• Price Competition

• Nonprice Competition

large number of businesses selling similar, but not the same, products and at different prices.

• Monopoly

• Monopolistic Competition

• Imperfect Competition

• Perfect Competition

competitive advantage based on factors other than price

• Monopolistic Competition

• Price Competition

• Nonprice Competition

• Free Market

policy that regulates the supply of money and interest rates by a central bank in the economy

• Fiscal Policy

• Monetary Policy

• Commerce

• Price Competition

is a market structure with one business that has complete control of a market's entire supply of goods or services

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Specific roles the government plays in the operation of our economy

• manages the economy

• provides public goods & services

• provides a legal framework

• promotes competition

• corrects for externalities

activities involved in buying and selling goods on a large scale, such as state-wide or nation-wide commerce

• government

• economy

• regulator

• commerce