This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which term describes the 'unseen' barriers to advancement? A) Price Floor. B) Equilibrium Wage. C) Price Ceiling. D) Glass Ceiling. Show Answer Correct Answer: D) Glass Ceiling. 2. Which of the following markets does NOT allow firms any market power? A) Perfect Competitive. B) Pure Monopoly. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: A) Perfect Competitive. 3. Follows these conditions:many buyers/sellers; all sell same product; buyers/sellers are informed; free market entry/exit A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 4. Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. He will need to hire someone for that. The form of business ownership that Joe might consider establishing is a(n) A) Sole proprietorship. B) Corporation. C) Monopoly. D) Partnership. Show Answer Correct Answer: D) Partnership. 5. What is the main characteristic of monopolistic competition? A) Firms produce identical products and have no control over prices. B) Firms produce similar, but not identical products, resorting to non-price competition. C) Only one firm produces unique products, having complete control over prices and production. D) Sellers and buyers are well informed and there are no barriers for entry or exit. Show Answer Correct Answer: B) Firms produce similar, but not identical products, resorting to non-price competition. 6. Price ceilings are always ..... equilibrium price. A) Above. B) Below. C) Equal to. D) None of above. Show Answer Correct Answer: B) Below. 7. In which market structure do firms have no control over the price of their products? A) Monopoly. B) Perfect competition. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Perfect competition. 8. Which of the following has two sellers and many buyers? A) Monopsons. B) Duopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: B) Duopoly. 9. Ramon decided to open his own software business. He borrowed money from a bank to buy computers and office equipment, and he hired one assistant. What is one DISADVANTAGE of Ramon's type of business organization? A) Limited liability. B) Ease of start-up. C) Flexibility. D) Unlimited liability. Show Answer Correct Answer: D) Unlimited liability. 10. Would car companies be in the oligopoly industry A) Yes. B) No. Show Answer Correct Answer: A) Yes. 11. All of the following are good things about competition in a market EXCEPT A) Requires some firms to receive larger subsidies. B) Keeps prices down. C) Ensures managers of firms take good care of our valuable resources. D) Fosters production of products that will actually make our lives better. Show Answer Correct Answer: A) Requires some firms to receive larger subsidies. 12. Which of the following is an example of a merger? A) An individual buys a franchise. B) Two individuals form a partnership. C) A company sells bonds to raise money for expansion. D) A company combines with a company that supplies it with raw materials. Show Answer Correct Answer: D) A company combines with a company that supplies it with raw materials. 13. Which is the market in which supply and demand establish the market price? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 14. A product, such as petroleum or milk, that is considered the same no matter who produces or sells it A) Commodity. B) Identical Assets. C) Identical product theory. D) Price War. Show Answer Correct Answer: A) Commodity. 15. There are many buyers AND sellers in this market structure. A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Pure/perfect competition. Show Answer Correct Answer: D) Pure/perfect competition. 16. Which is not a demand side Non-Price Factor? A) All of the above. B) Technological Change. C) Price of Inputs. D) Climactic Conditions. Show Answer Correct Answer: A) All of the above. 17. Barriers to Entry:Are there any obstacles that prevent other firms from entering the market for the good? If barriers are weak or absent from the market, the market will be more ..... A) Competitive. B) Monopolistic. C) Saturated. D) Unprofitable. Show Answer Correct Answer: A) Competitive. 18. The government does not regulate mergers between private companies. A) True. B) False. Show Answer Correct Answer: B) False. 19. Business organization that has the least difficulty raising money A) Corporation. B) Partnership. C) Wholesalers. D) Sole proprietorship. Show Answer Correct Answer: A) Corporation. 20. Monopoly created and/or owned by the government A) Government monopoly. B) Monopoly. C) Economies of scale. D) Public monopoly. Show Answer Correct Answer: A) Government 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