Abeka Economics Quiz 8

What are two of the three characteristics of monopolistic competition?

1. large number of firms* 2. differentiated products* 3. easy entrance and exit*

What act of 1914 that outlawed many practices not covered by earlier laws?

Clayton Act*

What is the governmental agency that investigates trade practices?

Federal Trade Commission*

SHORT ANSWER: What act adopted by the government in reaction to the large monopolistic trusts of the late 1800s?

Sherman Act*

MULTIPLE CHOICE: When most or all of the firms in an industry agree to charge high prices, what is the result?

collusion

What type of market occurs when an industry is dominated by only a few firms?

oligopoly*

What is selling the same type of goods at different prices to different buyers?

price discrimination

What is a collusion of businesses that join together to restrict or eliminate competition?

trust*

What forces a consumer to purchase certain goods before he is allowed to buy what he really wants?

tying contract