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Economics wt Reading
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1.
an increase
For most products and services,
________________ in price results
in demand for LESS of the product.
2.
collusion
an agreement among firms to divide the
market, set prices, or limit production
3.
competitive
A _______________ market runs
itself.
4.
complements
An increase in the price of gasoline
causes a decrease in the demand for
trucks. The two products are
___________.
5.
consumer demand
Advertising, fashion trends, and new
product introductions serve to create
_________________.
6.
consumption
Prices enable a market economy to
adjust to unexpected events by adjusting
________________ and production.
Economies of
Scale
as a company produces larger numbers
of a particular product, the cost of each
of these products goes down
8.
equals
Profits will be maximized when
marginal revenue _______ marginal
cost.
9.
equity/efficiency
The federal minimum wage law
demonstrates a societal choice for
economic ________ over efficiency.
10.
fairness
Perceived lack of _________ is a
characteristic of allocation by
rationing.
geographic
monopoly
market structure in which one firm has
a monopoly in a geographic area
12.
greater/demanded
At a given price, a surplus occurs when
the quantity supplied is ___________
than the quantity _____________.
13.
inelastic
If a modest price increase has little or
no effect, the demand for the product is
_________________.
14.
interdependence
Oligopoly is a market structure with a
great deal of _________ among firms.
15.
left
When producers offer fewer products for
sale at each and every price, the supply
curve has shifted to the ________.
16.
monopoly
A monopoly's prices are determined by
the _____________.
17.
more/less
In a market economy, a high price is a
signal for producers to supply
_________ and consumers to buy
______.
7.
11.
nonprice
competition
ways to convince buyers that the product is
unique or better than others by advertising,
giveaways, or other promotions
oligopoly
domination of a market by only a few large
sellers
perfect
competition
Market situation in which a large number of
well-informed and independent buyers and
sellers exchange identical products.
price fixing
an agreement among firms to charge one
price for the same good
product
differentiation
Manufacturer's use of minor differences in
quality and features to try to differentiate
between similar goods and services.
23.
SMART Goals
Specific, Measurable, Attainable, Realistic,
Timely
24.
substitution
Consumers' willingness to replace a costly
item with a less costly item in an example of
the ____________ effect.
25.
taxes
The supply of a product normally decreases
if ______ on the product increases.
26.
useful
A perfectly competitive market is necessary
for markets to be _________________.
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