Economics Word Bank

Chapter 7 – Market Structure

Vocabulary
Section 1 Section 2 Section 3
Market structure monopolistic completion antitrust activity
Perfect competition oligopoly merger
Commodity cartel deregulation
Monopoly
barriers to entry
market power

Questions

Section 1

1. What characteristics of farms demonstrate that these firms operate in perfectly competitive
markets?
2. Read “In the News” on page 191. Answer the Think about It question at the bottom of the
page.
3. Identify a firm that operates in your community that you think has a significant amount of
monopoly power. Explain why you chose this firm.

Section 2

4. Recreate the figure on page 205. (Figure 7.5)

5. What are the four ways products are different? Explain each!
6. What is an oligopoly? Name and explain a few in our economy.

Section 3

7. Imagine that there are two large discount stores in a small town. Describe one way in which
consumers might be harmed if these stores merged and one way consumers might benefit.
8. Read E-conomics on pg. 211. Answer the Think Critically Question at the bottom of the
page.

PLEASE ANSWER THE FOLLOWING QUESTIONS USING COMPLETE SENTENCES GIVING YOUR TEACHER
DETAILED EXPLANATIONS!