This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a monopsony? A) Many buyers, one seller. B) Many buyers & sellers. C) Few buyers, many sellers. D) One buyer & seller. Show Answer Correct Answer: C) Few buyers, many sellers. 2. A primary reason for government regulation is to protect consumers. A) True. B) False. Show Answer Correct Answer: A) True. 3. Slight control over prices, affordable prices, but can be somewhat higher because of nonprice competition-they compete for customers this way, production is slightly below equilibrium, efficient production and companies, small profit! A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: C) Monopolistic Competition. 4. Mergers are regulated by the government in order to keep trusts from forming. A) True. B) False. Show Answer Correct Answer: A) True. 5. What is not part of perfect competition? A) Buyer/ seller are well informed. B) Sellers cannot enter/ exit market easily. C) Low prices. D) Few barriers of entry. Show Answer Correct Answer: B) Sellers cannot enter/ exit market easily. 6. Term for costs that change with production A) Fixed Cost. B) Average Cost. C) Variable Cost. D) Marginal Cost. Show Answer Correct Answer: C) Variable Cost. 7. In the long run, the PERFECT COMPETITION market will experience A) Supernormal profit. B) Normal profit. C) Economic profit. D) Economic loss. Show Answer Correct Answer: B) Normal profit. 8. Which of the following antitrust laws was first enacted? A) Federal Trade Commission Act. B) Clayton Antitrust Act. C) Sherman Antitrust Act. D) Robinson-Patman Act. Show Answer Correct Answer: C) Sherman Antitrust Act. 9. What is a monopoly market structure? A) Theoretical condition. B) Small firms. C) Single seller, selling a unique product. D) Large buyers and sellers. Show Answer Correct Answer: C) Single seller, selling a unique product. 10. A monopolistically competitive firm will profit maximize using the marginal principle much like a(n) ..... A) Monopoly. B) Perfectly competitive firm. C) Oligopoly. D) None of above. Show Answer Correct Answer: A) Monopoly. 11. A market structure that does not meet the conditions of perfect competition A) Imperfect competition. B) Pure competition. C) Market place. D) Oligopoly. Show Answer Correct Answer: A) Imperfect competition. 12. In order to shop at a cooperative, you must be ..... A) A member. B) A retired veteran. C) Interviewed and hired. D) Financially stable. Show Answer Correct Answer: A) A member. 13. Why is economics regarded as social science? A) It is developed by humans. B) It formulates theories for societies. C) It explains demand and supply. D) It studies human behaviour. Show Answer Correct Answer: D) It studies human behaviour. 14. One Seller, Unique product A) Perfect Competition. B) Monopolistic Compeition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 15. What is the market demand curve for a monopoly firm? A) Horizontal. B) Upward sloping. C) Downward sloping. D) Vertical. Show Answer Correct Answer: C) Downward sloping. 16. A single seller controls the supply of a good or service A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Pure Monopoly. Show Answer Correct Answer: D) Pure Monopoly. 17. Which of these market structures has the least control over price in the marketplace? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 18. Market structure characterized by a single producer in a market A) Oligopoly. B) Purely Competitive. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 19. Monetary policy differs from fiscal policy in that monetary policy is A) More sensitive to political considerations. B) Under the control of the Federal Reserve System. C) More time-consuming to implement. D) Related to tax increases and decreases. Show Answer Correct Answer: B) Under the control of the Federal Reserve System. 20. Which of the following is NOT true about a perfectly competitive market? A) Many firms. B) Identical product. C) Price maker. D) Price taker. Show Answer Correct Answer: C) Price maker. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books