Econ Ch 7 Vocab Review

What is the definition of 'Market structure'?

• A) The organizational and other characteristics of a market, including the number and relative strength of buyers and sellers and the degree of collusion among them.

• B) A market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products.

• C) A product that consumers consider identical in all essential features to other products in the same market.

Fill in the blank: Perfect competition is a market structure characterized by a large number of well-informed independent buyers and sellers who exchange ________ products.

• identical

• diverse

• unique

• heterogeneous

What is a 'Standardized product'?

• A) A buyer or seller that is unable to affect the market price.

• B) A product that consumers consider identical in all essential features to other products in the same market.

• C) A market structure that does not meet the conditions of perfect competition.

Fill in the blank: A 'Price taker' is a buyer or seller that is unable to affect the ________ price.

• market

• negotiated

• set

• fixed

What is 'Imperfect competition'?

• A) A market structure characterized by a single producer; form of imperfect competition.

• B) A market structure that does not meet the conditions of perfect competition.

• C) A formal organization of producers that agree to coordinate prices and production.

What is 'Monopoly'?

• A) A market structure characterized by a single producer; form of imperfect competition.

• B) A firm that has the power to influence the price it charges as the good it produces does not have perfect substitutes.

• C) Any factor that makes it difficult for a new firm to enter a market.

Fill in the blank: A 'Cartel' is a formal organization of producers that agree to coordinate ________ and production.

• prices

• marketing

• budgets

• distribution

What is a 'Price maker'?

• A) A firm that has the power to influence the price it charges as the good it produces does not have perfect substitutes.

• B) A market that runs most efficiently when one large firm supplies all of the output.

• C) A monopoly created by the government.

Fill in the blank: A 'Barrier to entry' is any factor that makes it difficult for a new firm to enter a ________.

• market

• industry

• sector

• economy

What is 'Natural monopoly'?

• A) A monopoly created by the government.

• B) A market that runs most efficiently when one large firm supplies all of the output.

• C) A monopoly that is based on ownership or control of a manufacturing method, process, or other scientific advance.