This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Imagine Benjamin, Ethan, and Nora are playing a game of 'Market Masters'. They are trying to identify the type of market where there are many sellers offering differentiated products. Can you help them out? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: A) Monopolistic competition. 2. Which condition is NOT required for perfect competition? A) Many buyers and sellers. B) Identical products. C) Informed market. D) High barriers of entry. Show Answer Correct Answer: D) High barriers of entry. 3. All of the following may lead to market failure EXCEPT A) Insufficient information. B) Prices do not reflect cost of production. C) Inadequate competition. D) Buyers and sellers acting independently. Show Answer Correct Answer: D) Buyers and sellers acting independently. 4. What is a collusive oligopoly? A) Firms produce homogeneous products. B) Firms that act together to determine price or output. C) Firms that compete with each other in determining output. D) Firms that cheat to maximise profits. Show Answer Correct Answer: B) Firms that act together to determine price or output. 5. What is one kind of monopoly that the U.S. government generally permits? A) The electric company. B) Professional sports leagues. C) Computer companies. D) Standard Oil. Show Answer Correct Answer: A) The electric company. 6. Which of the following is an example of nonprice competition? A) American Eagle raises the price of all of their jeans. B) Burger King adds items to their dollar menu. C) Wal-Mart has a sale on sugar. D) Nike designs a purple pair of Jordans. Show Answer Correct Answer: D) Nike designs a purple pair of Jordans. 7. Exists when the business controls a manufacturing method or an invention protected by a patent A) Natural monopoly. B) Government monopoly. C) Technological monopoly. D) Geographic monopoly. Show Answer Correct Answer: C) Technological monopoly. 8. The Government seeks to encourage ..... Externalities. A) Negative. B) Neutral. C) Positive. D) None of above. Show Answer Correct Answer: C) Positive. 9. Definition:Market power A) Important features of a market, including the number of buyers and sellers, product uniformity across sellers, ease of entering the market, and forms of competition. B) The ability of a firm to raise its price without losing all sales to rivals. C) Restrictions on the entry of new firms into an industry. D) The sole supplier of a product with no close substitutes. Show Answer Correct Answer: B) The ability of a firm to raise its price without losing all sales to rivals. 10. Priya is studying different market structures in her economics class. She came across a scenario where a single company, say 'X', controls the entire market for a particular product. What is this market structure called? A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Pure Competition. Show Answer Correct Answer: C) Monopoly. 11. What type of a monopoly the government owns and operates? A) Natural Monopoly. B) Technological Monopoly. C) Geographic Monopoly. D) Government Monopoly. Show Answer Correct Answer: D) Government Monopoly. 12. A benefit someone receives who was not involved in the activity that generated the benefit. A) Neutral externalities. B) Positive externalities. C) Primary externalities. D) Negative externalities. Show Answer Correct Answer: B) Positive externalities. 13. In the 1990s, AT&T controlled 80% of the phone industry and was the ONLY provider of long distance phone service. This is an example of A) A monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: A) A monopoly. 14. What are some examples of corporations? A) Amazon Corporation. B) Google Inc. C) Facebook Company. D) Apple Inc., Microsoft Corporation, Coca-Cola Company tagsSSEMI3. Show Answer Correct Answer: D) Apple Inc., Microsoft Corporation, Coca-Cola Company tagsSSEMI3. 15. A market structure with a few large firms A) Monopoly. B) Oligopoly. C) Monopolistic comp. D) Perfect comp. Show Answer Correct Answer: B) Oligopoly. 16. Gordon lists his old Lionel electric trains on eBay and sets a minimum acceptable price at $ 75. He received three bids after five days on eBay:$ 25, $ 50, and $ 75. He accepts the latter. His producer surplus is: A) $ 0. B) $ 25. C) $ 50. D) $ 75. Show Answer Correct Answer: A) $ 0. 17. Promotes wise decision making when using resources A) Stability. B) Freedom freedom. C) Efficiency. D) Security. Show Answer Correct Answer: C) Efficiency. 18. A merger of corporations involved in different steps of manufacturing is known as ..... ? A) Horizontal merger. B) Conglomerate. C) Vertical merger. D) None of above. Show Answer Correct Answer: C) Vertical merger. 19. All of the following are examples of public disclosure EXCEPT A) Ingredient labels on food products. B) Yearly reports of how much money has been earned and spent. C) Listing of the people who are on the board of directors of a company. D) All of the above are examples of public disclosure. Show Answer Correct Answer: D) All of the above are examples of public disclosure. 20. Which of the following is regarded as the most influential factor of demand? A) Price of the commodity. B) Price of other commodities. C) Price of related commodities. D) Price of the market. Show Answer Correct Answer: A) Price of the commodity. ← 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