Honors Market Structures I

Front

The Government seeks to encourage __________ Externalities.

Back

Positive

Front

A ______ Externality occurs when a cost of production or consumption falls on a 3rd Party.

Back

Negative

Front

New landscaping in neighbor’s yard?

Back

Positive externality

Front

What is one reason that local law enforcement is considered a public good?

Back

Everyone in the community benefits from it.

Front

Which of the following explains why a city fireworks display on the Fourth of July is provided as a public good?
Fireworks displays usually take place in a public area.
Fireworks are a scarce resource.
Nonpayers cannot be prevented from seeing the fireworks.
Each consumer pays a fee to see the fireworks.

Back

Nonpayers cannot be prevented from seeing the fireworks.

Front

Which is NOT a characteristic of a monopoly? Seller sets the market price, Firm sells a unique product, One seller

Back

Entry into the market is easy

Front

Perfect competition involves: A large number of buyers & sellers

Back

A large number of buyers & sellers

Front

List the four market structures in order from least competitive to most competitive: Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition.

Back

Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition

Front

If a major car company such as Ford lowers their prices, what are other car companies likely to do?

Back

Lower their prices

Front

Which market structure is described by many sellers of blue jeans, each making their product slightly different, with free entry and exit into the market?

Back

Monopolistic Competition