State Standards:

DUE DATE: ON THE DAY OF THE TEST (AS ALWAYS)

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Section 1 Competition and Market Structures

Terms, People, and Events (15 of them, 1 point each)

Define each of these terms in your own words

1. laissez-faire
2. industry
3. market structure
4. imperfect competition
5. monopolistic competition
6. product differentiation
7. oligopoly
8. collusion
9. price-fixing
10. price war
11. independent pricing
12. price leadership
13. monopoly
14. franchise
15. economies of scale

Section Summary (3 points per section)

List each heading or subheading on your paper and write at least two sentences summarizing each one of them.

• Pure Competition

• Conditions for Pure Competition
• Profit Maximization
• A Theoretical Situation

• Monopolistic Competition

• Product Differentiation
• Nonprice competition
• Profit Maximization

• Oligopoly

• Interdependent Behavior
• Pricing Behavior
• Profit Maximization

• Monopoly

• Natural Monopoly
• Geographic Monopoly
• Technological Monopoly
• Government Monopoly
• Profit Maximization

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Section 2 Market Failures

Terms, People, and Events (5 of them, 1 point each)

Define each of these terms in your own words

• Market failure
• Externality
• Negative Externality
• Positive Externality
• Public Good

Section Summary (3 points per section)

List each heading or subheading on your paper and write at least two sentences summarizing each one of them.

• Inadequate Competition

• Dangers of Monopolies
• Economic and Political Power
• Both Sides of the Market

• Inadequate Information
• Resource Immobility
• Externalities

• Negative Externality
• Positive Externality
• Externalities as Market Failures

• Public Goods

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Section 3 Role of Government

Terms, People, and Events (3 of them, 1 point each)

Define each of these terms in your own words

• Trust
• Price Discrimination
• Public Disclosure

Section Summary (3 points per section)

List each heading or subheading on your paper and write at least two sentences summarizing each one of them.

• Anti-trust Legislation
• Federal Trade Commission Act
• Government Regulation
• Public Disclosure
• Modified Free Enterprise