Most businesses in the U.S. exist in […] markets, while most of the money Americans spend is on goods from […] markets.

Question

 monopolistic; perfectly competitive

 oligopolistic; monopolistically competitive

 perfectly competitive; monopolistic

 monopolistically competitive; oligopolistic

Answer 1

This question is asking about market structures. This is a microeconomic and industrial economics analysis where we identify markets by the level and form of business competition. Here's a short summary of the market structures:

1. Perfectly competitive: many firms sell identical products at the market (equilibrium price) and it's relatively easy for firms to enter or exit the market.
2. Monopolistic (or called monopoly): a single firm sells the dominant share of the good or service at a price higher than a competitive environment. The higher price also means consumers will buy a smaller quantity than in a competitive environment. Monopolies are protected by some sort of barrier to entry that prevents new firms from competition.
3. Monopolistically competitive: Similar to perfect competition, except that the products aren't identical and firms have some pricing power.
4. Oligopolistic: A market served by a few large firms who are protected by significant barriers to entry. Often oligopolistic firms produce products with high fixed start up costs that limit the number of firms in the market.

The answer to this particular question is: monopolistically competitive; oligopolistic

Monopolistic competition is the most common form of competitive environment in the US. Its releatvely easy to start a firm with a differentiated product, but difficult to keep it profitable long term. Oligopolies sell the largest share of goods and services in the US economy. These are also the firms which spend the most on advertising to boost consumer demand.