Market structures in economics
Macroeconomics
Market Structures in Economics
Pt. 1: Vocabulary
Complete the blanks with the correct vocabulary terms. Terms will only be used once; some will not be used.
1. Mass production resulting in greater efficiency and cost savings create______________________________.
2. A factory’s air pollution that causes asthma in children is an example of a ____________________________.
3. Groups that form for economic benefits for their group are called _______________________________.
4. A market structure where prices are set by price/demand, where many produce identical products is called _____________.
5. The measure of products consumers purchase is called ________________________.
6. A market structure with a single producer, with no close substitutes is called a ________________________.
7. A product sold in the market (can be exactly the same, no matter who produces it)_____________________.
8. Obstacles that keep a producer from accessing a market are _________________________________.
9. Organization of a market, based mainly on competition is a _______________________________________.
10. A market structure with a few firms, producing similar goods is a(n)_______________________________.
Oligopoly
Perfect competition Negative externality Consumption |
Monopoly
Commodity Market structure Collusion |
Trusts
Public goods Barriers to entry Economies of scale |
Pt. 2: Multiple Choice
Read each question carefully. Circle the letter of the most correct answer.
11. Which of the following is the best example of a cartel?
12. The soft drink industry, including Coca-Cola, Pepsi Co., and the Schweppes Group are examples of:
13. Which of the following is not an example of a barrier to entry in a market?
14. Why does brand loyalty matter?
15. Why are externalities examples of producer inefficiency?
Pt. 3: Short answer
16. Explain the difference between a monopoly and monopolistic competition.
17. Explain how barriers to entry may affect market structure
18. Evaluate the view that monopoly is an undesirable type of market structure
1. In which market structure would you place each of the following products: monopoly, oligopoly, monopolistic competition, or perfect competition? Why?
a. Retail market for water and sewerage services
b. Economics textbooks
c. Economics, by N. Gregory Mankiw and Mark P. Taylor
d. Photographic film
e. Restaurants in a large city
f. Car tyres
g. Breakfast cereal
h. Gold bullion
i. Air travel from any one airport