This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What condition is present in perfect competition but missing in monopolistic competition? A) Marginal analysis. B) Identical products. C) Freedom of entry and exit. D) Very large number of buyers and sellers. Show Answer Correct Answer: B) Identical products. 2. John opens a bubble tea shop in his neighbourhood. As the trend of drinking bubble tea rises, more similar shops started opening. What will happen to John's demand curve? A) No change. B) Shifts right. C) Shifts left. D) None of above. Show Answer Correct Answer: C) Shifts left. 3. What is not a requirement for the law of diminishing returns to operate in the short run? A) Average returns to a variable factor will increase then fall. B) Inputs of all of the factors will be variable. C) At least one factor will be fixed in quantity. D) Marginal product of a variable factor will increase then fall. Show Answer Correct Answer: B) Inputs of all of the factors will be variable. 4. What is the most common form of business? A) Partnership. B) Corporation. C) LLC. D) Sole Proprietorship. Show Answer Correct Answer: D) Sole Proprietorship. 5. Who defined economics as an inquiry into the nature and causes of the wealth of nations? A) Adam Smith. B) John Stuart Mill. C) Jean Stuart Mills. D) Alfred Marshall. Show Answer Correct Answer: A) Adam Smith. 6. A merger that joins companies that produce very similar products is called ..... A) Conglomerate. B) Vertical merger. C) Horizontal merger. D) Corporation. Show Answer Correct Answer: C) Horizontal merger. 7. On an average shopping trip, a consumer's eye lingers on a product for only about 2.5 seconds. In order to stay competitive, companies experiment with new formulas, along with the color and size of the product's packaging. These research and development costs can range from $ 100, 000 for adding a new color to an existing product line to millions of dollars for the creation of a new product. According to the passage, companies are trying to compete through A) Economies of scale. B) Collusion. C) Price-fixing. D) Non-price competition. Show Answer Correct Answer: D) Non-price competition. 8. Mr. Simpson is liable for all the debts of his company. Mr.Simpson has which type of business organization? A) Sole proprietorship. B) Monopoly. C) Perfect competition. D) Corporation. Show Answer Correct Answer: A) Sole proprietorship. 9. There are few sellers in this market A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 10. What is the term used to describe a factor that prevents a firm from entering into the market? A) Barrier to entry. B) Opportunity cost. C) Private property. D) Imperfect competition. Show Answer Correct Answer: A) Barrier to entry. 11. The fast food hamburger restaurant industry is a great example of a monopolistically competitive industry because each restaurant has a ..... on their own brand even though they all sell hamburgers of some kind. A) Monopoly. B) Oligopoly. C) Competitive advantage. D) Subsidy. Show Answer Correct Answer: A) Monopoly. 12. Is the first market structure incorporated or unincorporated? A) Incorporated. B) Unincorporated. Show Answer Correct Answer: A) Incorporated. 13. Why doesn't the market system work to provide street lighting and other public goods? A) Too few of these services are available. B) Important needs cannot be left to chance. C) Voters put pressure on local governments. D) There is no easy to charge individual users. Show Answer Correct Answer: D) There is no easy to charge individual users. 14. SSEMI3 b Mr. Coleman has only one choice (GA POWER) for electricity at his house, Ga Power. This is an example of a A) Technological Monopoly. B) Monopoly. C) Oligopoly. D) None of above. Show Answer Correct Answer: B) Monopoly. 15. Which of the following is NOT an oligopoly regulation A) No collusion. B) No price fixing. C) No cartels. D) No different pricing. Show Answer Correct Answer: D) No different pricing. 16. To reduce regulations A) Deregulate. B) Lower tax rates. C) Declassify. D) Anti-trust laws. Show Answer Correct Answer: A) Deregulate. 17. Even though they create a monopoly position, patent rights benefit society, in the form of: A) Patents make selling prices cheaper. B) Patents prevent one company from controlling key inputs. C) Patents reduce inefficiencies. D) Patents encourage creative behavior. E) Patents can be owned by anyone, not just the government. Show Answer Correct Answer: D) Patents encourage creative behavior. 18. Why is it important to understand different market structures? A) To study the dynamic world of economics. B) To gain insights into pricing and consumer choices. C) To comprehend how businesses operate and compete. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. True or False:The US government has no laws against unfair competition in the market. A) True. B) False. Show Answer Correct Answer: B) False. 20. In which market structure is a firm the "price setter?" A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Monopoly. ← 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