Florida Teacher Certification Examinations (FTCE) Social Science Practice Test

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Study for the Florida Teacher Certification Examinations Social Science Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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In economic terms, what does an oligopoly describe?

A market dominated by several sellers
A market with no competition
A market with a single seller
A perfect competitive market

The correct answer is: A market dominated by several sellers

An oligopoly describes a market structure where a small number of sellers have significant control over the market. These few firms dominate, which allows them to influence prices and output levels. Because there are only a limited number of firms, each seller's actions can impact the others, leading to strategic behavior such as price-fixing or collusion. In contrast to the other provided options: a market with no competition refers to a monopoly; a market with a single seller directly describes a monopolistic scenario; and a perfectly competitive market involves many sellers with no single firm's influence on price. Therefore, the definition of an oligopoly is accurately represented by the description of it as a market dominated by several sellers.