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