Unit 1 Microeconomics Vocab

Aiden and Mason are selling lemonade in their neighborhood. They both use the same recipe and sell at the same price, creating a market structure where competition is at its greatest because all sellers are offering identical products.

• Monopoly

• Perfect Competition

• Supply

• Vertical Merger

Rohan noticed that in his town, there is only one company that provides electricity to all the residents, and no other company is allowed to compete with it.

• Elastic

• Perfect Competition

• Horizontal Merger

• Monopoly

An industry with limited competition because it is dominated by a few large producers in the market.

• Market

• Oligopoly

• Monopoly

• Corporation

Ethan's company manufactures car engines, and Noah's company produces car bodies. They decide to join forces to streamline the production of cars. What is this type of merger called?

• Horizontal Merger

• Vertical Merger

• Partnership

• Conglomerate

Charlotte and Jackson are CEOs of two companies that produce similar goods. They decide to join their companies together. What is this type of merger called?

• Monopoly

• Perfect Competition

• Vertical Merger

• Horizontal Merger

Elijah runs a lemonade stand and is willing to sell lemonade at various prices. What is this an example of?

• Demand

• Scarcity

• Supply

• Market

Abigail's desire, willingness, and ability to buy a new smartphone at various prices.

• Demand

• Supply

• Entrepreneurship

• Market

Sophia receives extra pocket money if she completes her homework on time, while Maya loses her TV privileges if she doesn't. Rewards or punishments motivate people to behave in a certain manner.

• Trade-off

• Monopoly

• Incentive

• Profit Motive

A business that is legally a separate entity from its owners and shareholders

• Conglomerate

• Partnership

• Corporation

• Sole Proprietorship

Anika and Grace decide to start a bakery together. They agree to oversee the business operations and share its profits and losses. What type of business arrangement have they formed?

• Corporation

• Partnership

• Monopoly

• Oligopoly