History 7-12 PACT test Study Guide

Pure competition CORRECT ANSWER Economic model that describes a hypothetical market form in which neither the producer or consumer has the market power to influence prices. Defines a market equilibrium in which all resources are allocated and used efficiently, and collective social welfare is maximized. monopolistic competition CORRECT ANSWER Common market from where there are many producers and consumers, consumers perceive that there are non-price differences in the products, few barriers to entry and exit, and producers have a degree of control over price. Markets for restaurants, cereal, shoes, clothing, and services in large cities. Oligopoly CORRECT ANSWER A market form in which a market or industry is dominated by a small number of sellers. When oligopolists in the same market collide and agree to raise prices and restrict production, a cartel forms. Monopoly CORRECT ANSWER Market form that exists when a specific individual or enterprise has sufficient control over a particular product or service to significantly determine the terms on which other individuals shall have access to it Partnership CORRECT ANSWER Business entity in which partners (owners) share with each other the profits and losses of the business undertaking in which all have invested. Corporation CORRECT ANSWER Am institution that is granted a charter recognizing it as a separate legal entity having its own privileges, and liabilities distinct from those of its members. There are many different forms of corporations, most of which are used to control business. Copernicus CORRECT ANSWER Polish