H Econ Unit 3 Study Guide
Chapter 7
Section1
1) Describe the four conditions that are in place in a perfectly competitive market.
2) List two common barriers that prevent firms from entering a market.
3) Describe prices and output in a perfectly competitive market.
Perfect Competition
Commodity
Barriers to Entry
Section 2
1) Describe characteristics and give examples of Monopoly.
2) Describe how monopolies are formed, including government monopolies.
3) Explain how a firm with a monopoly sets output and price, and why companies
practice price discrimination.
Monopoly
Types of Monopolies
Economies of Scale
Patent
Franchise
License
Price Discrimination
Section 3
1) Describe characteristics and give examples of monopolistic competition.
2) Explain how firms compete without lowering prices.
3) Understand how firms in a monopolistically competitive market set output.
4) Describe characteristics and give examples of oligopoly.
Oligopoly
Monopolistic Competition
Product Differentiation
Nonprice Competition
Section 4
1) Understand the purpose and effect of Antitrust laws.
2) Define deregulation and describe its effects when implemented.
Deregulation
Anti-Trust Laws
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Chapter 8
1) Compare and contrast the advantages and disadvantages of the major forms of
business organization.
2) Understand how a business franchise works.
Sole Proprietorship
Types of Partnerships
Mergers
Corporation
Fringe Benefit
Publicly Held Corporation
Multinational Corporation
Franchise
Chapter 9
Section 1
1) Analyze past and present occupational trends.
2) Summarize how the U.S. labor force is changing.
Labor Force
Current Labor Market Trends
Learning Effect
Screening Effect
Historical Wage Trends
Section 2
1) Analyze the relationship between supply and demand in the labor market.
2) Understand the connection between wages and skill levels.
3) Describe other factors affecting wages.
Derived Demand
Equilibrium Wage
Minimum Wage
Factors that Affect Wages
Glass Ceiling
Labor Unions
Section 3
1) Explain how labor and management negotiate contracts.
Strike
Collective Bargaining