7
If a shoe company pays a professional athlete to wear shoes it makes, it is an example of _____
all
Which would an economist say best describes a "trust"?
an illegal combination
_ is an illegal agreement among producers to fix prices, limit output, or divide markets.
collusion
Because private business is involved in certain aspects of our economy, it is a modified version of free enterprise.
false
A mortgage is a document in which a lender reclaims a property due to a lack of payment by the borrower.
false
Price discrimination is the practice of setting prices to maximize sales.
false
What level of government is most closely associated with zoning?
local
By promoting transparency, the government can improve
market efficiency.
What do externalities indicate?
market failure
condition that has none of the requirements for a competitive market—adequate competition, knowledge of prices and opportunities, mobility of resources, and competitive profits.
market failure
Pure competition is a theoretical _ that requires three conditions: very large numbers, identical products, and freedom of entry and exit.
market structure
_is based on a product's appearance, quality, or design.
non price
market structure in which a few large sellers dominate and have the ability to affect prices in the industry is called a(n) _.
oligopoly
In the United States, the federal government enforces antitrust laws and regulations to try to maintain effective levels of competition.
true
Laws and regulations have been adopted in the United States to promote competition among firms.
true
The government does not try to eliminate all monopolies. Why
Not all monopolies are bad
calculation that compares the cost of an action to its benefits
cost-benefit analysis
A plant in a small town closes, leaving hundreds of people unemployed. There are jobs available at a similar plant in another state, but many of the unemployed workers are unwilling to move or cannot afford to move. An economist might use this example to ______.
define resource immobility
Which of the following is a benefit for monopolies?
economies of scale
unintended side effects that either benefit or harm a third party not involved in the activity that caused it
externalities
harm suffered by a third party because of the actions of others
negative spillover
What happens when some of the costs or benefits associated with production and consumption fall on someone other than the producers or consumers of a product?
there are unintended effects or spillovers
The market structure called perfect competition is best described as ____
theoretical
_is a market structure having all conditions of pure competition except for identical products.
Monopolistic
Which market structure is defined by a single producer?
Monopoly
What condition differentiates a market of pure competition from one of monopolistic competition?
price
economic products that are paid for and consumed collectively, such as highways, national defense, police and fire protection
public goods
Which of the following do economists use to classify markets?
size of firms type of product number of firms all
