Unit 4 Definitions

1. when a business is big enough to behave like a monopoly and has some control over price (or quantity supplied) and can maintain some barriers to entry (8, 5)
5. when two objectives cannot both be achieved, the more you have of one variable the less you have of the other (5, 4)
6. overseeing business activity to ensure that the business is abiding to rules and regulations (8)
7. expression describing the onset and spread of inflation throughout an economy (11)

2. ability of a producer to exert some level of control over a market, e.g. setting prices, setting barriers to entry (6, 5)
3. (X-M) difference between exports and imports (5, 7)
4. market structure in which a few firms dominate (9)
8. objective measure of income inequality and can range from 0 to 1, higher the Gini coefficient, the higher the level of inequality (3, 4, 11)
9. any medium where buyers and sellers interact and agree to trade at a price (6)
10. agreement between businesses to reduce competition or not to compete with each other, agreement is usually secret and may be implemented in various ways (6)

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