Chapter 7 - Market Structures

Question 1

Is a market structure characterized by a single producer in a market

Answer 1

Monopoly

Question 2

Is a market structure in which a few very large sellers dominate the industry

Answer 2

Oligopoly

Question 3

Are economic side effects that affect an uninvolved third party

Answer 3

Externalities

Question 4

Pollution is a negative spillover and it is difficult to correct because…

Answer 4

Unregulated firms often have an incentive to pollute

Question 5

Is a legal document that pledges ownership of a home to a lender as security for repayment of borrowed money

Answer 5

Mortgage

Question 6

Is an illegal combination of corporations or companies organize to surpress competition

Answer 6

Trust

Question 7

Is the situation in which a lender reclaims a home because that borrower has defaulted on the previously agreed upon payment

Answer 7

Foreclosure

Question 8

Foreclosure is the situation in which a lender reclaims a home because

Answer 8

that borrower has defaulted on the previously agreed upon payment

Question 9

is a negative spillover

Answer 9

Pollution

Question 10

What is Laissez-Faire? (Whole definition)

Answer 10

The French term that means “allow them to do” was the philosophy that limited government in protecting property and enforcing contracts.

Question 11

Under perfect competition…

Answer 11

Supply and demand sets the equilibrium price

Question 12

What is a Market Structure? (Whole definition)

Answer 12

Is a classification that describes the nature and degree of competition among firms in the same industry. It includes number and size of firm, type of product, and type of competition.

Question 13

What is a Monopoly? (Definition)

Answer 13

Is a market structure characterized by a single producer in a market.

Question 14

What is Oligopoly? (Definition)

Answer 14

Is a market structure in which a few very large sellers dominate the industry.

Question 15

Monopoly

Answer 15

The opposite of pure competition

Question 16

What is a market failure? (Definition)

Answer 16

Occurs whenever a flaw in the market system prevents an efficient allocation of resources. There are 5 main causes including not enough competition.

Question 17

What is public good

Answer 17

Is an economic product that is paid for and consume collectively, such as highways, national defense, police and fire protection.

Question 18

Externalities (Definition)

Answer 18

Are economic effects that affect an uninvolved third party