Unit 3 Microeconomics

What is an oligopoly?

• A market structure in which a few large firms dominate a market. Ex: coffee shop or gas station

• A market structure in which a lot of large firms manage the market. Ex: retail, airlines

• A market structure in which a few companies manage and run the establishments. Ex: Pharmaceutical industry, Car manufactories

• A market structure in which a few large firms dominate a market. Ex: public education, parks & recreation

What is a monopoly? Give an example.

• an enterprise that is the only seller of a good or service. Ex. Microsoft

• an organization that dominates the economy. Ex. Wal-Mart

• is a board game that usually ends with someone flipping the board... : )

• None of the above

What is a competition? Give an example.

• an event between two individuals to win first place. Ex: track racing

• two or more consumers vying to the cheapest cost

• the chance for two parties to sell products at the highest cost knowing consumers will pay any price

• involving two or more firms, in which each firm tries to get people to buy its own goods in preference to the other firm's goods. Ex: Farmer's Market

What happens in the Product Market?

• goods and services are sold to private industry

• goods and services are sold to the public sector ONLY

• final goods or services are sold to businesses and the public sector

• goods and services are sold to the private sector ONLY

What happens in the Factor Market?

• gives services, labor to the factor

• gives products to businesses which sells them back to the Factor Market for higher profit

• gives consumer resources to produce other goods

• gives productive resources (goods used to produce other goods) to Businesses in exchange for payment

How do individuals contribute to the circular flow of economic activity?

• products are bought and sold to consumer directly

• by working for higher pay and minimal labor

• by working - giving away time and labor and by buying products - giving away money

• none of the above

In a Market Economy, who determines prices?

• Consumers ONLY

• Seller & Buyer

  Supply & Demand

• Producers ONLY

• Supply & Demand - only after buyers and sellers agree on a mutual cost

In a Command Economy, who determines prices?

• consumers own the means of production

• producers set production and prices

• sellers ONLY

• governments own the factors of production and set prices

What is supply?

• total amount of a good & service to a consumer

• the consumer's demand of a certain product

• the producer's supply cost directly to the consumer

• total amount of a products value

What is demand?

• the necessity for a product

• the desire, willingness, and ability to buy a product

• the desire, willingness and ability to sell a product

• the needs of the consumer