This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Susan works for the state of Georgia as a probation officer. Her labor provides the government with a service, and in return she is paid by the state. With her salary, Susan buys goods she needs from private firms. She also pays taxes to the government so they can continue to provide public services that people need. Susan's economic interdependence with the government and private businesses is referred to as A) Economic independence. B) The monetary cycle. C) The money flow. D) Circular flow of economic activity. Show Answer Correct Answer: D) Circular flow of economic activity. 2. Market structure where market power is increased because they are the only or very few who provide this product. A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 3. A dump truck is an example of which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 4. When competitors cut their prices really low to win business A) Price War. B) Collusion. Show Answer Correct Answer: A) Price War. 5. What kind of market structure is efficient with 1 business supplying? A) Natural monopoly. B) Oligopoly. C) Imperfect competition. D) Perfect competition. Show Answer Correct Answer: A) Natural monopoly. 6. Which of the following is not a characteristic of a competitive market? A) There are many buyers and sellers in the market. B) The goods offered for sale are largely the same. C) Firms generate small but positive economic profits in the long run. D) Firms can freely enter or exit the market. Show Answer Correct Answer: C) Firms generate small but positive economic profits in the long run. 7. Which of the following examples represents a Monopolistic Competition? A) Music. B) Airlines. C) Textile farmer. D) Cereals. Show Answer Correct Answer: A) Music. 8. Which market structure has the most pricing power? (Pricing power is the ability to raise your price above your competition and still make sales) A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 9. Oligopolies control prices by A) Non-price competition. B) Magic. C) Collusion. D) All of the above. Show Answer Correct Answer: C) Collusion. 10. Business model in which stock is sold to help raise money for re-investment in the company A) Corproation. B) Sole proprietorship. C) Partnership. D) None of above. Show Answer Correct Answer: A) Corproation. 11. The market for razor blades is dominated by Procter and Gamble's Gillette and Edgewell Personal Care's razors. What level of barriers of entry are there in this market? A) Low. B) None. C) High. D) None of above. Show Answer Correct Answer: C) High. 12. In game theory, when players have strong preference for a strategy, it is called A) Dominant strategy. B) Dominated strategy. C) Preferred strategy. D) Differentiated strategy. Show Answer Correct Answer: A) Dominant strategy. 13. What is product differentiation in monopolistic competition? A) The practice of selling identical products at different prices in different markets. B) The strategy of making a product or service appear distinct from others in the market through branding, design, quality, or other features. C) The process of reducing the price of a product to attract more customers. D) The act of copying the design or features of a competitor's product. tagsSSEMI3. Show Answer Correct Answer: B) The strategy of making a product or service appear distinct from others in the market through branding, design, quality, or other features. 14. Which of these market structures has more market power over setting prices? A) Pure competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 15. A soft drink manufacturer that decides to buy a sugar plantation to ease the production of its products would be an example of ..... A) Conglomerate. B) Vertical merger. C) Horizontal merger. D) Corporation. Show Answer Correct Answer: B) Vertical merger. 16. Demand is unit elastic if it is less than 1.0 A) True. B) False. Show Answer Correct Answer: B) False. 17. McDonalds is in what market A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: B) Monopolistic Competition. 18. All of the houses in Glynn County are serviced by Georgia Power for their electricity. What type of monopoly is this? A) Geographic Monopoly. B) Technical Monopoly. C) Natural Monopoly. D) Government Monopoly. Show Answer Correct Answer: C) Natural Monopoly. 19. The soft drink industry, including Coca-Cola, Pepsi Co., and the Schweppes Group are examples of: A) Monopoly. B) Perfect competition. C) Oligopoly. D) None of above. Show Answer Correct Answer: C) Oligopoly. 20. In the Long Run, what is the equilibrium position of a Perfectly Competitive Firm? A) MC = MR = AC = AR. B) MC = MR = TC = AR. C) MC = MR = AVC = AR. D) MC = MR = AFC = AR. Show Answer Correct Answer: A) MC = MR = AC = AR. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 2Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books