This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Failures > Market Failures – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Failures Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Consumer surplus arises in a market because: A) At the market price, quantity supplied is greater than quantity demanded. B) At the current market price, quantity demanded is greater than quantity supplied. C) Some consumers are willing to pay more than the equilibrium price but pay a lower market price. D) Some consumers are willing to pay less than the equilibrium price but pay a higher market price. Show Answer Correct Answer: C) Some consumers are willing to pay more than the equilibrium price but pay a lower market price. 2. Government monopoly A) Monopoly created and or owned by the government. B) The exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same. C) Market structure in which the average costs of production are lowest when all output is produced by a single firm. D) A government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention. Show Answer Correct Answer: A) Monopoly created and or owned by the government. 3. A merit good will require society to make a value judgement A) True. B) False. Show Answer Correct Answer: A) True. 4. Things that are for our collective well-being are funded by our ..... A) Government. B) Free markets. C) Selves. D) Emus. Show Answer Correct Answer: A) Government. 5. The monopoly market structure is the opposite of the perfect competition market structure. A) True. B) False. Show Answer Correct Answer: A) True. 6. Which categories of goods are rival in consumption? A) Private goods and club goods. B) Private goods and common resources. C) Public goods and club goods. D) Public goods and common resources. Show Answer Correct Answer: B) Private goods and common resources. 7. Which of the following is an example of companies in monopolistic competition? A) Nike, Regal Cinemas, Toyota. B) Netflix, Hulu, Amazon Prime. C) Coca-Cola, Adidas, General Electric. D) AT&T, Universal Studios, Kellogg's. Show Answer Correct Answer: B) Netflix, Hulu, Amazon Prime. 8. A surplus A) QS>QD. B) QD>QS. C) QD=QS. D) None of above. Show Answer Correct Answer: A) QS>QD. 9. A market for a good or service where there is only one supplier, or that is dominated by one supplier ..... A) Monopoly. B) Collusion. C) Perfect competition. D) Barriers to entry. Show Answer Correct Answer: A) Monopoly. 10. Who tries to prevent market failures due to negative externalities? A) The FBI. B) Merchant Marines. C) The Government. D) Porch Pirates. Show Answer Correct Answer: C) The Government. 11. When companies that form on oligopoly cooperate together to set or fix prices at a given level, they are engaging in A) Cartel. B) Non-Price Competition. C) Collusion. D) Price Leadership. Show Answer Correct Answer: D) Price Leadership. 12. Which of the following is not a public good? A) Street Lights. B) The Army. C) Buses. D) Flood Control Systems. Show Answer Correct Answer: C) Buses. 13. Which of the following statements is true about externalities? A) When externalities exist, resources are allocated efficiently. B) When positive externalities exist, efficiency is improved by taxing the product. C) From society's point of view, the output of goods for which a positive externality exists is too low. D) The price system overproduces goods with positive externalities. Show Answer Correct Answer: C) From society's point of view, the output of goods for which a positive externality exists is too low. 14. Products that are offered are identical in A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Oligarchy. Show Answer Correct Answer: A) Perfect competition. 15. Something with a positive impact on others A) Positive Externality. B) Negative Externality. Show Answer Correct Answer: A) Positive Externality. 16. Which market structure would be considered the most competitive because it has the most number of sellers? A) Perfect (pure) competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect (pure) competition. 17. Government subsidies have the effect of A) Lowering the cost of production. B) Reducing supply. C) Lowering output. D) Raising production costs. Show Answer Correct Answer: A) Lowering the cost of production. 18. The actions of an individual seller do not affect the overall supply or price of a good or service. A) Perfect Competition. B) Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 19. A price floor is a government set price ..... equilibrium, like ..... A) Above, minimum wage. B) Below, minimum wage. C) Above, rent controls. D) Below, rent controls. Show Answer Correct Answer: A) Above, minimum wage. 20. Which of the following is not an example of an inelastic product? A) Dr. Services. B) Milk and Bread. C) Gasoline. D) Chevy Trucks. Show Answer Correct Answer: D) Chevy Trucks. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Failures Quiz 1Market Failures Quiz 2Market Failures Quiz 3Market Failures Quiz 4Market Failures Quiz 5Market Failures Quiz 6Market Failures Quiz 7Market Failures Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books