This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the names of the two ways in which the government influences the business cycle? A) Supply and Demand. B) Monetary Policy and Fiscal Policy. C) Surplus and Shortage. D) Expansion and Contraction. Show Answer Correct Answer: B) Monetary Policy and Fiscal Policy. 2. Why does the government place price ceilings on some "essential" goods? A) To prevent inflation during to reduce supply for these goods. B) To keep business people from making large profits. C) To keep the goods from becoming too expensive. D) To reduce demand for these goods. Show Answer Correct Answer: C) To keep the goods from becoming too expensive. 3. Makari and Jenna are discussing the benefits of a sole proprietorship. Which might you hear them say? A) Unlimited liability. B) Long lasting life. C) Dividends. D) Keeping all the profits. Show Answer Correct Answer: D) Keeping all the profits. 4. Which of the following is an advantage of a sole proprietorship? A) Easy to discontinue. B) Unlimited liability. C) Lack of permanence. D) Limited access to resources. Show Answer Correct Answer: A) Easy to discontinue. 5. Not-for-Profit Corporations have to pay taxes. A) True. B) False. Show Answer Correct Answer: B) False. 6. Only one seller sells a product for which there are no close substitutes A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Monopoly. 7. Which of the following basically sets up mini monopolies? A) Price fixing. B) Market allocation. C) Predatory pricing. D) Competitive pricing. Show Answer Correct Answer: B) Market allocation. 8. On which continent is the Sahara desert? A) Asia. B) Africa. C) America. D) Europe. Show Answer Correct Answer: B) Africa. 9. Imagine David, Nora, and Ava are playing a game of 'Market Masters'. In this game, they each own a business in a market structure known as 'monopolistic competition'. Can you tell what this means? A) It means David, Nora, and Ava are the only firms selling a unique product in the market. B) It means David, Nora, and Ava are among many firms selling differentiated products in the market. C) It means David, Nora, and Ava are among a few firms selling identical products in the market. D) It means there is no competition in the market where David, Nora, and Ava are doing business. Show Answer Correct Answer: B) It means David, Nora, and Ava are among many firms selling differentiated products in the market. 10. This can result if the government limits how much of an item you can get so everyone gets a little. A) Rationing. B) Supply. C) Origination. D) Los Angeles Lakers. Show Answer Correct Answer: A) Rationing. 11. Which of the following is true of a monopolistically competitive market? A) There are only a few large firms in the market and all produce identical products. B) There is one large firm in the market and it sells a product with no close substitutes. C) There are a huge number of firms selling identical products at the same price. D) There are many firms but each sells a product that is slightly different than its competitors' products. E) Firms are price takers and spend very little, if at all, on advertising. Show Answer Correct Answer: D) There are many firms but each sells a product that is slightly different than its competitors' products. 12. A market structure in which only a few sellers offer a similar product A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: A) Oligopoly. 13. In Game Theory: A) Firms are always assumed to act independently. B) Firms are always assumed to cooperate with each other. C) Firms always collude as part of a cartel. D) Firms consider the actions of others before deciding what to do. Show Answer Correct Answer: D) Firms consider the actions of others before deciding what to do. 14. Cooperation between two or more parties to limit competition. The parties may agree to divide a market, set prices, etc. A) Anti-trust. B) Collusion. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Collusion. 15. Government document granting an inventor the right to produce, use, or sell an invention exclusively for a limited period of time. A) Zoning. B) Patent. C) Collusion. D) Anti-Trust. Show Answer Correct Answer: B) Patent. 16. The barriers to entry in a monopoly are very low/easy entry A) False. B) True. Show Answer Correct Answer: A) False. 17. ..... is achieved when quantity demanded and quantity supplied are equal. A) Surplus. B) Shortage. C) Equilibrium. D) Subsidy. Show Answer Correct Answer: C) Equilibrium. 18. Which of the following markets is an example of an oligopoly? A) Farmers. B) Electronics. C) Airline industry. D) Book stores. Show Answer Correct Answer: C) Airline industry. 19. The profit-maximizing rule is that a firm will maximize profits:MC = MR A) True. B) False. Show Answer Correct Answer: A) True. 20. What is a monopoly? A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service in a specific market. B) A monopoly is a type of market structure where multiple companies compete for control over a particular product or service. C) A monopoly is a government program that provides financial assistance to low-income individuals. D) A monopoly is a type of board game where players buy and trade properties to try to bankrupt each other. Show Answer Correct Answer: A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service in a specific market. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 2Market Structures Quiz 3Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books