economic exam

Question 1

the desire to work to improve ones economic situtaion

Answer 1

profit motive

Question 2

the value of the best alternative when a different alternative is taken

Answer 2

opportunity cost

Question 3

groups of firms that produce similar products

Answer 3

industries

Question 4

how many market models are there

Answer 4

4

Question 5

which of the models is describe as the purest form of competition

Answer 5

prefect competition

Question 6

characteristic of perfect competition

Answer 6

large number of independant sellers

Question 7

each firm in a perf com has no real control over the price it receives. its called a:

Answer 7

price taker

Question 8

situation when a firm is the only supplier

Answer 8

monopoly

Question 9

can there be close subs. in a monopoly

Answer 9

no

Question 10

what occurs when a single firm can fill the demand more efficiently than another firm

Answer 10

natural monopoly

Question 11

trademark is an example of:

Answer 11

legal monopoly

Question 12

example of a monopolistic competition

Answer 12

shampoo, clothing,

Question 13

characteristics of monopolistic competition

Question 14

car manufacturing is an example of

Answer 14

oligopoly

Question 15

the form leading firms must control:

Answer 15

40%

Question 16

first important ant trust law

Answer 16

sherman act

Question 17

second most important antitrust law

Answer 17

clayton act

Question 18

selling the same type of good at difference prices

Answer 18

price discrimination

Question 19

what makes possible a better standard of living for everyone

Answer 19

competition