This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 41 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which economic system is based on private ownership of resources and the use of markets and prices to coordinate and direct economic activity? A) Feudalism. B) Communism. C) Socialism. D) Capitalism/Free Market. Show Answer Correct Answer: D) Capitalism/Free Market. 2. Keyshawn & Daniyah operate in a market where there are a lot of sellers. Which of the following is true? A) They are playing in market that is a partnership. B) There are few barriers to entry. C) They are operating in an oligopoly. D) They cannot be operating in a monopolistically competitive market. Show Answer Correct Answer: B) There are few barriers to entry. 3. A monopoly is formed when there is ..... A) An abundance of resources. B) A large profit. C) No competition. D) Anti-trust regulations. Show Answer Correct Answer: C) No competition. 4. SSEMI3 The type of business organization with the potential for the longest lifespan (i.e., "unlimited life") A) Sole proprietorship. B) Corporation. C) Partnership. D) None of above. Show Answer Correct Answer: B) Corporation. 5. What is the supply curve for a Perfectly Competitive Firm based on? A) The quantity of a good or service that a firm is willing and able to consume at different prices. B) The quantity of a good or service that a firm is willing and able to produce at different prices. C) The quantity of a good or service that a firm is willing and able to sell at different prices. D) The quantity of a good or service that a firm is willing and able to buy at different prices. Show Answer Correct Answer: C) The quantity of a good or service that a firm is willing and able to sell at different prices. 6. How does monopolistic competition affect pricing and output decisions? A) Monopolistic competition has no effect on pricing and output decisions. B) Monopolistic competition allows firms to have some control over pricing and output decisions. C) Monopolistic competition leads to higher prices and lower output. D) Monopolistic competition results in lower prices and higher output. tagsSSEMI3. Show Answer Correct Answer: B) Monopolistic competition allows firms to have some control over pricing and output decisions. 7. To which of the following modern scenarios would Adam Smith MOST likely object? A) The federal government provides incentives for farmers to limit agricultural production. B) The president seeks to reduce the number of pollution regulations imposed upon big business. C) Congress works with the president to pass a bill to reduce tariffs (taxes) on import goods. D) None of above. Show Answer Correct Answer: A) The federal government provides incentives for farmers to limit agricultural production. 8. What is the condition for revenue maximisation? A) MC > MR. B) MC = MR. C) MC = 0. D) MR = 0. Show Answer Correct Answer: D) MR = 0. 9. If a single firm raises its price it will not be able to sell any of its output. A) Perfect Competition. B) Pure Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 10. Help to protect people from unexpected events A) Stability. B) Growth. C) Equity. D) Security. Show Answer Correct Answer: D) Security. 11. Use the following headlines to answer the question below. Many sellers in marketProducts are identicalEasy to enter and exit the marketPrice takers The above headlines are all examples of A) Monopolistic competition. B) Pure (perfect) competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Pure (perfect) competition. 12. Zoe's Bakery determines that P < ATC and P > AVC. Zoe should: A) Continue to operate even though she is taking an economic loss. B) Continue to operate, as she is making an economic profit. C) Shut down immediately, as she is taking an economic loss. D) Raise the price until she has maximized her profits. Show Answer Correct Answer: A) Continue to operate even though she is taking an economic loss. 13. A situation in which many businesses compete for customers is called ..... A) Perfect Anarchy. B) Perfect Competition. C) The Free Market. D) Monopoly. Show Answer Correct Answer: B) Perfect Competition. 14. As it becomes easier to start a new business in a market, that market A) Attracts more consumers. B) Increases transaction costs. C) Become more competitive. D) Offers higher-quality products. Show Answer Correct Answer: C) Become more competitive. 15. With monopolistic competition there are A) Few sellers and few buyers. B) Few buyers but many sellers. C) Many buyers and many sellers. D) None of above. Show Answer Correct Answer: C) Many buyers and many sellers. 16. Every firm no matter what maximizes its profits where A) Marginal cost equals marginal revenue. B) Total costs exceed marginal revenue. C) Price times quantity sold. D) The manager thinks it is best. Show Answer Correct Answer: A) Marginal cost equals marginal revenue. 17. Which one of the following is an ideal market structure in which consumers and producers each compete directly under the laws of supply and demand? A) Oligopoly. B) Copyright. C) Natural monopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 18. Which of the following is the best example of a standardized product? A) Car. B) Boots. C) Cereal. D) Skim Milk. Show Answer Correct Answer: D) Skim Milk. 19. Who runs corporations? A) The ceo. B) Board of directors. C) Secretary. D) Stockholders. Show Answer Correct Answer: D) Stockholders. 20. Firms in monopolistic competition A) All produce exactly the same product. B) All charge the same price. C) All earn the same profit. D) All work to differentiate their products. Show Answer Correct Answer: D) All work to differentiate their products. ← 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