Unit II Assessment - Economics

Perfect Competition

an economic model of a market structure with many buyers and sellers, homogeneous products, perfect information, and free entry and exit

Monopoly

a market structure where a single company is the sole seller of a product or service, facing no competition

Why do perfect competition benefit buyers, and monopolies benefit sellers?

In perfect competition, lots of sellers compete, so prices are low and buyers get more choices. In a monopoly, one seller controls everything, so prices are high and buyers have fewer choices.

What to produce?

Sellers know what to procude for their targeting audience

How to Produce?

What is the cheap easy way to produce it while maintaining affecitcy.

Who to produce it for?

Who is their targeted audicence

Traditional Economy

is one where customs and traditions decide what to produce, how to produce it, and who gets it. This system is common in rural or farming communities

Market/Free Market Economy

is an economic system where everyday people and businesses decide what gets made and what things cost.

Command/Planned Economy

is one where the government decides what to produce, how to produce it, and who gets it. All major decisions and production are centrally controlled.

Mixed Economy

combines private businesses and government control. Both individuals and the government help decide what to produce and how goods and services are distributed.

Invisible Hand Concept

the idea that when individuals act in their own self-interest in a free market, they unintentionally help the whole economy work well, as if guided by an unseen force.

Capitalist

a person who supports or benefits from capitalism, an economic system where private individuals or businesses own and control property and resources to make a profit

Communist

someone who supports or believes in communism, an economic and political system where all property is owned by the community or government, and wealth is shared equally among everyone.

Socialist

A socialist is someone who supports or believes in socialism, a system where the government or the community owns and controls key industries, aiming to reduce inequality and provide for everyone's needs.

What are the four key “players” in our current US economic system?

households, businesses, the government, and the rest of the world

Is the US a mixed market Economy?

Yes, it combines private businesses and individual choices with government regulations and programs to guide and support the economy.

How does the US labor market change over time?

The US labor market changes as technology, globalization, demographics, education, and the economy affect which jobs are available and needed. Over time, some jobs disappear while new ones are created to match these shifts.

How does America place value on certain jobs?

Based on income, and how much they add to the economy.

What are some qualities of a monopoly?

One seller Controls the entire market.