Exam 6: The Market System: Functions, Structure, and Institutions

All of the following are ground rules government can establish to help markets function well except

Explain the differences between patents and copyrights.

The key issue with competition is the role competition plays in eliminating ________ and making the ________ as large as possible.

A market in which there are many sellers who all sell an identical product is called

Scenario 6.1: Tasha and Gloria are friends who each produce beaded headbands. Each can choose to work somewhat hard and expend $10 worth of effort, or can work extremely hard and expend $15 worth of effort. If either works somewhat hard, she can produce headbands that sell for a total of $22. If either works extremely hard, she can produce headbands which sell for a total of $30. Both Tasha and Gloria are equally good at making beaded headbands. -Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the dominant strategy is for Tasha to work ________ and for Gloria to work ________.

Scenario 6.1: Tasha and Gloria are friends who each produce beaded headbands. Each can choose to work somewhat hard and expend $10 worth of effort, or can work extremely hard and expend $15 worth of effort. If either works somewhat hard, she can produce headbands that sell for a total of $22. If either works extremely hard, she can produce headbands which sell for a total of $30. Both Tasha and Gloria are equally good at making beaded headbands. -Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the Nash equilibrium occurs where

The idea that in the market system, consumers ultimately decide which goods and services firms will produce is known as

Patents and copyrights are granted for a period of 20 years from the date of creation.

Sandra wants to purchase a Nitro scooter from the only Nitro dealer in town, but the dealer will not sell her the scooter unless she also purchases an extended warranty for $1,000. Sandra does not want to purchase the extended warranty from the dealer because she knows she can purchase the exact same warranty from her insurance company for $500. In this instance, the Nitro dealer appears to be violating one of the provisions of

Property rights that are granted to the creators of original work to produce and sell that work are called

When obtaining information is costly, competition is

All of the following are ways in which the government can help insure the quality of information consumers receive except

Laws and courts tend to make markets work ________ and make society ________.

Which of the following acts makes it a felony for competing businesses to fix prices?

Scenario 6.1: Tasha and Gloria are friends who each produce beaded headbands. Each can choose to work somewhat hard and expend $10 worth of effort, or can work extremely hard and expend $15 worth of effort. If either works somewhat hard, she can produce headbands that sell for a total of $22. If either works extremely hard, she can produce headbands which sell for a total of $30. Both Tasha and Gloria are equally good at making beaded headbands. -Refer to Scenario 6.1. The Nash equilibrium occurs where

Property rights are limited to tangible items such as land and machinery.

What are the differences between the four market structures in terms of the number of sellers in the market and the types of products produced?

The tobacco industry is an example of an oligopoly market structure.

In an oligopoly market, there is (are) ________ seller(s).

Goods that are very useful and highly desired are likely to be relatively expensive, no matter how scarce or abundant they are.