Chapter 7 Econ Vocab Quiz

What is a franchise?

• A government-owned corporation

• A market with perfect competition

• A written contract granting permission to sell someone else's product.

• A type of monopoly

What is a monopoly?

• A market structure with many competitors

• A market structure where one firm controls the market

• A type of competitive market

• A government-regulated market

What is market power?

• A measure of a market's resistance to economic downturns

• The total number of firms in a market

• The power of consumers to dictate market terms

• The ability of a firm to set or influence the price of a product in the market

What are antitrust laws?

• Laws that fix prices of commodities

• Laws that promote or encourage monopolies

• Laws that regulate against trade

• Laws designed to protect consumers by promoting competition

What is a barrier to entry?

• Business that dominates the industry

• Factors that make it difficult to enter a certain industry

• Are extremely high in 'perfectly competitive markets'

• Only affect Monopolies

What is a patent?

• A sick patient

• Not a sick patient

• Not a license for your product

• A license for your product

What is collusion?

• illegal practice between firms

• a legal agreement between firms

• a form of market competition

• government regulation

In an oligopoly, you have ____ firms that control____ of the market

(a)  

What is a price war?

• When rival firms continuously reduce prices to undercut each other.

• When there is inflation.

• When there is deflation.

• When rival firms continuously increase prices to undercut each other.

What is predatory pricing?

• setting prices low enough to force competitors out of business

• setting prices just marginally below competitors

• copying other companies' changes in price

• setting prices the exact same as competitors