midterm (bookmarked flashcards)

Question 1

w-4 form

Answer 1

employee fills out form to tell employer how much to withhold from paycheck

Question 2

form w-2

Answer 2

employer fills out to tell employee how much they made, how much got withheld bc of state/federal taxes

Question 3

perfect competition

Answer 3

large number of firms who sell identical product

Question 4

monopoly

Answer 4

single producer controls an industry

Question 5

unitary elastic demand

Answer 5

change in product price = change in demand

Question 6

trade-off

Answer 6

all of the options you give up when you make a choice

Question 7

opportunity cost

Answer 7

the value of the next best option you gave up when you had a choice

Question 8

oligopoly

Answer 8

small number of firms dominate in industry, high starting costs and obstacles

Question 9

monopolistic competition

Answer 9

all the same qualities as perfect competition, except same products. they have similar products with an uniqueness to them.

Question 10

price leadership

Answer 10

dominant in firm sets price and smaller levels follow them

Question 11

collusion

Answer 11

producers get together to illegally set prices

Question 12

cartels

Answer 12

formal organization of producers that agree to coordinate priceand productions : illegal in the us

Question 13

natural monpoly

Answer 13

situation where cost of productionis minimized by hqvinf only one firm