Module 10 - Understanding Markets and Market Structures

Activity 1 : : Activity 2 : : Activity 3 : : Activity 4 : : Activity 5

Activity 1: Introduction

Understanding Market Structures

In completing this module, you will become acquainted with the variety of market structures that economists use as “models” of economic activity, from the merely theoretical model of a Perfectly Competitive Market, to the most uncompetitive of markets, Monopoly.  In between these two extremes are a variety of actually existing structures characterized by more or less competition, and more or less market influence by individual producers.  Your goal is to understand the nature of different market structures, as well as the effect these have on Production and on Consumers.

Understanding a Free Enterprise Economy

In order to accomplish this objective you must become familiar with the role of an entrepreneur within the Free Enterprise System.  The Free Enterprise system functions on the basis of individuals’ response to monetary and other incentives, and Entrepreneurs are only one of many actors in an economic system responding to such incentives.  Even so their function is both critical and unique.

You might want to stop again to consider that much of “economic thought” is also based upon a study of incentives and how this idea takes one back to the original notion of choice.

Understanding Labor Markets

You must be able to demonstrate an understanding of Labor Markets in a Free Enterprise System, and how wages and levels and types of Unemployment occur, as well as the role Labor Unions play in attempting to raise pay and improve employment conditions.  The negative features of Unionization should be understood as well.