Economics and Monopoly, Unit 4

This type of economy is passed down through family traditions. They learn from their parents. 

• Traditional 
• Market 
• Mixed 
• Command 

Which two groups of people are represented in the circular flow model?

• Buyers and Sellers
• Producers and Consumers
• Government and Private Individuals
• Households and Businesses

This means that the government should not interfere in the marketplace.

• Laissez Faire

• Capitalism

• Communism

• Socialism

The amount of money a business makes after its expenses are paid

• profit

• supply

• demand

• scarcity

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes

Which of the following market structures results in allocative efficiency? 

• Monopoly
• Monopolistic Competition
• Perfect Competition
• Oligopoly

A barrier to entry is

• An obstacle that makes it difficult for new firms to enter a market.

• A commitment on the part of big business to allow smaller companies to compete.

• An obstacle that prevents additional workers from entering an industry, such as a union.

If there are many firms in an industry producing goods that are similar but slightly different, this is an example of

• Monopoly

• Monopolistic competition.

Product differentiation refers to

• Features that make one product appear different from competing products in the same market.

• The selling of identical products in different markets.

Which of the following usually results from colluding firms?

• Less is produced

• Profit decreases

• Prices are higher