Future Business Leaders of America (FBLA) Personal Finance Practice Test

The term for when one business has complete control of the market is known as a monopoly. In a monopoly, a single firm dominates the entire supply of a product or service, effectively eliminating competition. This allows the monopolistic company to set prices, control market supply, and make decisions that a competitive market would not allow, such as price discrimination and creating barriers to entry for any potential competitors.

This concept is important in economics as it highlights the implications of market control on consumers and other businesses. The absence of competition can lead to higher prices and reduced quality of goods and services, as the monopolizing entity does not have the pressure of competitors to innovate or improve.

Understanding a monopoly is crucial for recognizing the dynamics of different market structures and how they impact the economy as a whole. The other options refer to different kinds of market structures with varying degrees of market power and competition, but they don't describe the complete control that defines a monopoly.