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Q4 ECON > PART 2 > Flashcards

PART 2 Flashcards

1
Q

TRUE OR FALSE: In economic analysis, the main concern is to realize the maximum profit.

A

True

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2
Q

The gap or difference between revenue and cost

A

Profit

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3
Q

TRUE OR FALSE: One Seller = High Profit

A

True

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4
Q

TRUE OR FALSE: Limited Market Power = Minimal Profit

A

False (Medium Profit)

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5
Q

TRUE OR FALSE: Perfect Competition = High Profit

A

False (Minimal Profit)

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6
Q

TRUE OR FALSE: Highly Differentiated Product = High Profit

A

True

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7
Q

TRUE OR FASLE: Monopoly = High Profit

A

True

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8
Q

TRUE OR FALSE: Monopolistic Competition = Minimal Profit

A

False (Medium Profit)

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9
Q

TRUE OR FALSE: No Market Power = Minimal Profit

A

True

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10
Q

TRUE OR FALSE: Scale and Legal Barriers, Gov’t Barriers = High Profit

A

True

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11
Q

Refers to the number of sellers and buyers in the market.

A

Market Concentration

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12
Q

TRUE OR FALSE: The more concentrated the market, the more producers are there in the industry.

A

FALSE

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13
Q

Refers to inherent features of the industry and the various means devised in the market to prevent the entry of potential players and competitors that want to take advantage of the enormous profit in industry

A

Barriers to Entry

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14
Q

Two Categories of Market Barriers

A

Scale Barriers and Legal Barriers

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15
Q

Refers to requirements for a large production plants for a feasible operation in the industry

A

Scale Barriers

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16
Q

Refer to proprietary rights and their corresponding legal protection extended to existing market players in the production and distribution of a product or service

A

Legal Barriers

17
Q

This factor refers to the ability of a business firm to create a market niche through several means of varying its products and services.

A

Product Differentiation

18
Q

This element refers to the unevenness in the distribution of information among the actors in the market

A

Limited Information

19
Q

There are many sellers, none of which controls the prices and output of the whole industry

A

Pure Competition

20
Q

There is only one seller who represents the whole industry.

A

Pure Monopoly

21
Q

There is only one product or service with no substitutes

A

Pure Monopoly

22
Q

Due to severe barriers to entry no other entities can compete in the market

A

Pure Monopoly

23
Q

There are a few sellers of differentiated products with strict barriers to entry.

A

Oligopoly

24
Q

There are many sellers with unique products, each trying to gain a competitive advantage

A

Monopolistic Competition

25
Q

Two forms of barriers to entry

A

Industry Barrier and Government Intervention

26
Q

Initial capitalization of a business is very expensive

A

Industry Barrier

27
Q

Licenses are difficult to secure or taxes are very high.

A

Government Intervention

28
Q

TRUE OR FALSE: Industry Barrier and Government Intervention are both present in pure competition.

A

False

29
Q

It refers to the type of customers and their number as well.

A

Market

30
Q

TRUE OR FALSE: Knowing and understanding your customers are essential to identify the service or good to present to the market

A

TRUE

31
Q

It refers to categorizing your customers according to demographic and geographic groups.

A

Market Segmentation

32
Q

This describes the kind of customers you have in terms of gender, age, and income.

A

Demographics

33
Q

refers to belonging to a certain place

A

Geographic Segment

34
Q

Defined as the source of materials used in production by a producer, a seller, or a manufacturer.

A

Supplier

35
Q

Goods that can replace other goods because of similarities, appearances, use, among others.

A

Substitutes

Q4 ECON (4 decks)

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