Economics
Unit Three: Study Guide
Chapter 6: Market Structures
Define each term in your own words.
1. Perfect competition
2. Buyer/seller
3. Monopoly
4. Monopolistic competition
5. Product differentiation
6. Nonprice competition
7. Oligopoly
8. Price leadership/war
9. Collusion/cartel
10. Natural monopoly
11. Geographic monopoly
12. Technological monopoly
13. Government monopoly
14. Trust
Chapter 7: Business Structures
Define each term in your own words.
1. Sole proprietorship
2. Liability
3. Collateral
4. Partnership
5. General partnership
6. Limited partnership
7. Corporation
8. Stock/share
9. Dividend
10. Common stock
11. Preferred stock
12. Principal
13. Interest
14. Merger
15. Horizontal/vertical
consolidation
16. Franchise
17. Cooperative
1. What four conditions must exist for a
market to be perfectly competitive?
2. How does monopolistic competition
differ from perfect competition?
3. What are the four main types of
monopolies? Under what conditions
do they tend to arise?
4. In what ways has government
attempted to ensure fair prices?
1. What types of challenges does a sole
proprietor face?
2. What challenges do partnerships face?
3. Legally, how is a corporation treated
as an individual?
4. What advantages does
INCORPORATION give to
shareholders and to the company?
5. Compare horizontal, vertical and
conglomerate combinations. Give an
example of each.