Chapter 7 Review

In an oligopoly, how many sellers could there be?

• One seller

• Unlimited Sellers

• Few sellers

• No sellers

The Sherman Antitrust Act, the Clayton Antitrust Act, and The Federal Trade Commission Act were all designed to

• Ensure competition

• Extend mortgages

• Create public goods

• Promote trusts

In the United States, we say that it is a “modified” free enterprise economy because almost everything we do and everything we buy in some way is affected by

• Money

• The government

• Inventors

• Business

When a factory pollutes a river, the resulting water pollution is an example of

• Public good

• Technological monopoly

• Negative Externality

• Natural Monopoly

Which of the following contributes to market failure?

• Mobility of resources

• Knowledge of prices and opportunities

• Adequate competition

• Lack of competition

What is an example of a public good?

• Bread

• The Army

• A car

• A rock band

Which best describes a “trust”?

• A public good

• An illegal combination

• A feeling in a market

• A federal order

The government does not try to eliminate all monopolies because

• Not all monopolies are bad

• It would be impossible

• The government itself is a monopoly

• Monopolies no longer exist

An example of a Federal Agency would be

• The National Weather Service

• McDonald’s

• The NFL

• The American Broadcasting Company

Market fails can happen because of

• 6 main causes

• 5 main causes

• 3 main causes

• Market failure never happens