Econ Unit 2 Test Review pt. 3

  1. Shortage
    Quantity supplied is less than quantity demanded
  2. Price floor
    Lowest legal price that can be CHARGED for a product
  3. Product differentiation
    Differences between competing products in same industry
  4. Minimum wage
    Lowest legal wage that can be paid to most workers
  5. Market structure
    Nature and degree of competition among firms operating in same industry
  6. Price-fixing
    Agreement, usually illegal, by firms to charge a uniform price for a product
  7. Laissez-faire
    Philosophy that government should not interfere with commerce or trade
  8. Monopolistic competition
    Market structure having all conditions of pure competition except for identical products
  9. Economies of scale
    Increasingly efficient use of personnel, plant, and equipment as a firm becomes larger
  10. Imperfect competition
    Lacks one or more conditions of perfect competition
  11. Collusion
    Formal agreement to set prices or cooperate
  12. Government monopoly
    Government owned monopoly
  13. Oligopoly
    Few large sellers dominatethe industry
  14. Natural monopoly
    Market where average costs are lowest when all output is produced by a single firm
  15. Trust
    illegal combination of corporations or companies organized to hinder competition
  16. Monopoly
    Only one seller of a particular product
  17. Technological monopoly
    Market situation where a firm has a monopoly because it owns or controls a manufaturing method, process, or other scientific advance
  18. Public Disclosure
    Requirement forcing a business to reveal infornation about its products or its operations to the public
  19. Geographic monopoly
    Monopoly based on absence of other sellers in a certain geographic area
  20. Externality
    economic side effect that affects an uninvolved third party
  21. Price Discrimination
    Illegal practice of charging customers different prices for same product
  22. Market Failure
    Market where any of requirements of a competitive market are lacking
  23. Public Goods
    Economic product that is consumed collectively; highways, national defense, police and fire protection
  24. Cease and desist order
    Ruling requiring a company to stop an unfair business practice that reduces or limits competition
Card Set
Econ Unit 2 Test Review pt. 3
Econ Unit 2 Test Review pt. 3