DO NOT WRITE ON THIS SHEET DO NOT WRITE ON THIS SHEET

ECONOMICS
Chapter 7
Introduction - Key

1. The standard we are covering is SSEMI4.

2. The United States is a market economy.

3. A market is an arrangement that allows buyers & sellers to exchange

things.

4. Laissez faire means keep government out of the affairs of business.

5. Two benefits of competition are:

a. Keeps prices down
b. Encourages technology

6. Two negative outcomes of NOT using competition to determine prices and

output are:
a. surpluses
b. shortages

7. Industry/ market is the supply side of the market.

8. Four types of market structures are:

a. perfect competition
b. monopoly
c. monopolistic competition
d. oligopoly

Mr. Powers – March 19, 2010

ECONOMICS
Chapter 7
Market Structures - Key

Directions: Copy the graphic organizer on the back of your funsheet.

Label it “Chapter 7 – Market Structures.” Follow along in class as we fill it
in.

How many Identical/ Buyers/ Easy Influence

suppliers? similar/ sellers entry/ over
different well- exit of price?
products? informed? market?

Many Identical Well- Easy None

Monopoly CompetitionPerfect

informed

One No close NA Difficult Total

substitutes

Lots of
Oligopoly CompetitionMonopolistic

Many Differentiated NA NA
influence over
products price if
supplier can
convince
consumer to
pay more

Few Similar NA Difficult NA

Mr. Powers – March 19, 2010