TExEs
TExES Business and Business
Finance 6–12and
(276)Finance 6-12
Exam Study (276)
Guide
Study this set o nline at: https://www.cram.co m/flashcards/texes-business-and-
finance-6-12-276--9061657
Modern economi cs f ounder, created cl assi cal economi cs, and promoted l ai ssez-
Adam Smi th's theori es of mi croeconomi cs f ai re pol i ci es and was a f ree market capi tal i st. Known as the i nvi si bl e hand f or
sel f regul ated markets
Ref ers to how one vari abl e changes i n response to another. Pri ze el asti ci ty of
E l asti ci ty demand equal s percent change i n the quanti ty demanded di vi ded by percent
change i n the pri ce.
Al l compani es make products that are exactl y the same. T hey are i denti cal , and
Perf ect competi ti on because of thi s common no one f i rm has a l arge market share. F i rms do not have
control over pri ci ng.
Many di f f erent producers that sel l si mi l ar but not i denti cal products. A f orm of
Monopol i sti c competi ti on
i mperf ect competi ti on.
Occurs when there are onl y a smal l amount of busi nesses suppl yi ng a certai n
Ol i gopol y
product, meani ng there i s very l i mi ted competi ti on. H i gher pri ci ng and prof i ts.
Occurs when one company i s the onl y provi der of a product. T here i s no competi ti on
Monopol y
and no reasonabl e substi tute that consumers can purchase.
TExES Business and Business
Finance 6–12and
(276)Finance 6-12
Exam Study (276)
Guide
Study this set o nline at: https://www.cram.co m/flashcards/texes-business-and-
finance-6-12-276--9061657
Modern economi cs f ounder, created cl assi cal economi cs, and promoted l ai ssez-
Adam Smi th's theori es of mi croeconomi cs f ai re pol i ci es and was a f ree market capi tal i st. Known as the i nvi si bl e hand f or
sel f regul ated markets
Ref ers to how one vari abl e changes i n response to another. Pri ze el asti ci ty of
E l asti ci ty demand equal s percent change i n the quanti ty demanded di vi ded by percent
change i n the pri ce.
Al l compani es make products that are exactl y the same. T hey are i denti cal , and
Perf ect competi ti on because of thi s common no one f i rm has a l arge market share. F i rms do not have
control over pri ci ng.
Many di f f erent producers that sel l si mi l ar but not i denti cal products. A f orm of
Monopol i sti c competi ti on
i mperf ect competi ti on.
Occurs when there are onl y a smal l amount of busi nesses suppl yi ng a certai n
Ol i gopol y
product, meani ng there i s very l i mi ted competi ti on. H i gher pri ci ng and prof i ts.
Occurs when one company i s the onl y provi der of a product. T here i s no competi ti on
Monopol y
and no reasonabl e substi tute that consumers can purchase.
