Economics Chapter 7: Market Structures Study Guide with Answers

Powerful Essays
Economics Chapter 7: Market Structures Study Guide Chaplain Ron McCants, Teacher

True/False
Indicate whether the statement is true or false.

____ 1. Perfect competition requires a market structure with freedom for firms to enter or leave the market.

____ 2. Oligopoly is a market structure with one very large firm.

____ 3. A government monopoly is a monopoly based on ownership or control of a manufacturing method or process.

____ 4. The Clayton Antitrust Act was the first significant law against monopolies in the United States.

____ 5. A condition of perfect competition is characterized by product differentiation.

____ 6. Non-price competition is the use of advertising, giveaways, and other promotional campaigns to win customers.

____ 7. Market failure can occur when resources do not move freely from one industry to another.

____ 8. Economists describe an unintended side effect of a business activity as an externality.

____ 9. The United States government uses taxes to reduce the effects of negative externalities.

____ 10. Corporations selling stock to the public must disclose their financial and operating information to both the public and the Securities and Exchange Commission.

Completion
Complete each statement.

11. Inadequate ____________________ may enable a business to influence politics by wielding its economic might.

12. ____________________ and ____________________ that are uninformed about conditions and opportunities in a particular market can lead to market failure.

13. Receiving drain on your lawn from a neighbor's sprinkler system is an example of a _________________________.

14. Externalities are classified as _________________________.

15. Public goods are usually provided by the ____________________, not the market.

Matching

Match each statement with the correct item below. a. formal agreement to set prices or to behave in a cooperative manner
b. requirement that

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