Econ: Ch. 7 and 8

Market structure in which only a few large sellers dominate and have the ability to affect prices in an industry.

• Oligopoly

• Monopoly

• Trust

Market structure characterized by a single producer in a market.

• Oligopoly

• Monopoly

• Trust

Economic products that are paid for and consumed collectively, such as highways, national defense, police and fire protection.

• Private Goods

• Market Goods

• Public Goods

• Investments

Economic side effects upon an uninvolved third party.

• Private Goods

• Public Goods

• Utilities Failure

• Externalities

A woman borrows money from a bank to purchase a house. She promises to give the bank the house if she cannot repay the loan. The loan for the house is a type of _________________ .

• foreclosure

• mortgage

• trust

• cease and desist order

We say the United States has a modified free enterprise economy because almost everything we produce or purchase is in some way affected by _________________.

• business

• money

• government

• inventors

A philosophy that government should not interfere with business activity.

• Laissez-faire

• Communism

• Socialism

• Economies of Scale

The government does not try to eliminate all monopolies. Why?

• It would be impossible

• The government itself is a monopoly

• All monopolies have been eliminated.

• Not all monopolies are harmful.

What level of government is most closely associated with zoning?

• Federal

• Interstate

• State

• Local

In market economies where is profit maximized?

• When Marginal Cost = Marginal Revenue

• When Marginal Utility = Marginal Cost

• When Marginal Profit is greater than Marginal Cost

• When Total Revenue is greater than Total Cost.