ch 7 and 11 Flashcards
Pure competition is characterized by all of the following EXCEPT
small number of buyers and sellers.
What type of monopoly is the result of the location of abusiness firm?
geographic monopoly
Monopolistic competition is separated from pure competition by
product differentiation
All of the following are major types of market structures EXCEPT
collusion
Oligopoly is a market situation with a great deal of
interdependence among firms
Market situation in which there are only a few very largesellers of a product.
oligopoly
Market situation in which there is only one seller of aproduct that has no close substitutes.
monopoly
Situation in which large size leads to efficiency
economies of scale
Philosophy that Government should not interfere with commerce
Laissez-faire
Market situation in which a large number of independentand well-informed buyers and sellers deal with identicalproducts.-
pure competition
All of the following may lead to a market failure EXCEPT
resource mobility
Which of the following is an example of a public good?
main street
What is the result of inadequate competition?
any of the above
Which of the following is an example of resource mobility?
an engineer taking a job at a different factory
Why is adequate information needed by the buyers and sellers in a market?
information is needed to make economic decisions
Economic side effect that harms a third party
negative externality
Economic side effect that benefits a third party
positive externality
Economic side effect that affects a third party
externality
Situation when a market fails to perform as expected and problems develop.
market failure
Products that are collectively consumed by the population
public good
Legally formed combination of corporations or companies
trust
1890 act designed to “protect trade and commerce against unlawful restraints and monopoly”
Sherman Antitrust Act
Order requiring a company to stop an unfair business practice
cease and desist order
Practice of charging customers different prices for the same of the same product.
price discrimination
Requirement that businesses reveal information to thepublic
public disclosure
Which of the following antitrust laws was enacted first?
Sherman Antitrust Act
Why are trusts regulated by the government?
to promote competition
The Federal law that forbade rebates and discounts on the sale of goods to large buyers unless rebates and discounts were available to all
Robinson-Patman Act
Public disclosure supports competition by
providing buyers and sellers with information
Government participation in the American economy is designed to
eliminate or reduce market failures
A __________ economy is a moneyless economy that relies on trade.
barter
A __________ is something accepted by all parties as payment for goods and services.
medium of exchange
To be successful, money must be __________.
portable, durable, divisible, and limited in supply
Money functions as all of the following EXCEPT
a monetary standard
Any substance that functions as a medium of exchange, ameasure of value, and a store of value
money
What is the origin of the American dollar?
the Spanish peso and Austrian taler
To be successful medium of exchange, money must be all ofthe following EXCEPT
easily available
Expression of worth and a function of money
measure of value
Money in the form of coins
specie
Under what monetary standard does the United States currently operate?
The inconvertible fiat money standard
All of the following currencies were in use after the Civil War EXCEPT
state bank notes
Which of the following statements about gold standard is FALSE?
nder the gold standard, it is easier to expand the money supply.
Which of the following statements about money in the United States is FALSE?
The United States money supply is convertible into gold.
A fiat currency that must be accepted in payment for debts
legal tender
Mechanism designed to keep the money supply portable,durable, divisible, and stable in value.
monetary standard
Monetary standard under which the basic unit of currency is equivalent to and can be exchanged for a set amount of gold.
gold standard
All of the following are requirements of a bank joining the national banking system EXCEPT
The bank must charter under a state or federal government.
Each of the following is an example of a depository institution except
The Federal Deposit Insurance Corporation
System that allows banks to obtain charters from either state or the federal government.
dual banking system
System that functions as the central bank of the United States.
federal reserve system
