This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a characteristic of a monopolistic competitive market? A) Products are identical. B) Entry into the industry is easy. C) Producers have complete control over price. D) There is only one producer. Show Answer Correct Answer: B) Entry into the industry is easy. 2. If a major car company such as Ford lowers their prices, what are other car companies likely to do? A) Raise their prices. B) Go out of business. C) Maintain their current prices. D) Lower their prices. Show Answer Correct Answer: D) Lower their prices. 3. Which business organization type is difficult to establish? A) Corporation. B) Sole Proprietorship. C) Partnership. D) Booster Club. Show Answer Correct Answer: A) Corporation. 4. Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies do not have control over the price and there are low barriers to entry. A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic competition. 5. What is the main characteristic of a monopoly market structure? A) The main characteristic of a monopoly market structure is that there is one seller or producer in the market, with no perceived close substitutes for the product or service. B) The main characteristic of a monopoly market structure is that the market is shared by some industries. C) The main characteristic of a monopoly market structure is that there are many sellers in the market. D) The main characteristic of a monopoly market structure is that the products have many close substitutes. Show Answer Correct Answer: A) The main characteristic of a monopoly market structure is that there is one seller or producer in the market, with no perceived close substitutes for the product or service. 6. Which market structure includes McDonalds and Hungry Jacks? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 7. Which is NOT a characteristic of perfect competition? A) Numerous buyers and sellers. B) Standardized product. C) Differentiated product. D) Independent buyers and sellers. Show Answer Correct Answer: C) Differentiated product. 8. A group of corporations run by a single board of directors A) Trust. B) Corpoation. C) Company. D) Conglomerate. Show Answer Correct Answer: A) Trust. 9. What kind of products. are sold in a perfectly competitive market? A) Products are similar but not identical. B) Products are identical. Show Answer Correct Answer: B) Products are identical. 10. An economic system in which people are free to start their own businesses or to do whatever work they want. Also called capitalism or free market system A) Bank Account. B) Free Enterprise System. C) Trade Agreement. D) None of above. Show Answer Correct Answer: B) Free Enterprise System. 11. This is an unsavory practice that big businesses can take part in which results in higher costs for consumers. A) Price fixing. B) Collision. C) Law of demand. D) Economies of scale. Show Answer Correct Answer: A) Price fixing. 12. The amount of something available to consumers is ..... A) Supply. B) Demand. C) Surplus. D) Shortage. Show Answer Correct Answer: A) Supply. 13. A monopoly created by economies of scale is known as a A) Monopoly with a patent. B) Non-regulated monopoly. C) Natural monopoly. D) Monopoly without barriers to entry. Show Answer Correct Answer: C) Natural monopoly. 14. If Farmer John expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is standardizedand that he will have no control over the market price. The market structure he is MOST likely participating in is A) Pure oligopoly. B) Perfect competition. C) Differentiated oligopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Perfect competition. 15. For a competitive market, the supply curve will be closely related to A) Preferences of consumers who buy the company's products. B) Income tax rates imposed by the government. C) The company's production costs. D) The interest rate offered for government bonds. E) Taxes imposed by the government. Show Answer Correct Answer: C) The company's production costs. 16. These are disadvantages of what type of business organization? Unlimited liabilty, burden of responsibility on owner, and limited life A) Sole Proprietorship. B) Partnership. C) Cooperation. D) Limited liability company. Show Answer Correct Answer: A) Sole Proprietorship. 17. Low barriers to entry, but differentiated products give businesses some control over prices. A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic competition. 18. An industry with a large number of firms, differentiated products, and free entry and exit is called A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) None of above. Show Answer Correct Answer: B) Monopolistic competition. 19. Which market structure has very high product differentiation levels? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 20. The cost added by producing one additional product or service. A) Marginal cost. B) Marginal revenue. C) Relative cost. D) Relative revenue. Show Answer Correct Answer: A) Marginal cost. ← 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