This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 45 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Local Water company A) Natural. B) Government. C) Technological. D) Geographic. Show Answer Correct Answer: A) Natural. 2. Series of price reductions that may become so drastic that each seller suffers considerable losses. A) Price war. B) Collusion. C) Patent. D) Anti-Trust Legislation. Show Answer Correct Answer: A) Price war. 3. There are 3 types of monopolies identify which of the following answer is correct. A) Natural-production of a product from a single firmGeographical-ownership or control of a manufacturing method, process, or other scientific advance.Technological-monopoly based on the absence of other sellers in a certain geographic area. B) Natural-production of a product from a single firmGeographical-monopoly based on the absence of other sellers in a certain geographic area Technological-ownership or control of a manufacturing method, process, or other scientific advance. C) Natural-ownership or control of a manufacturing method, process, or other scientific advance.Geographical-production of a product from a single firmTechnological-monopoly based on the absence of other sellers in a certain geographic area. D) Natural-ownership or control of a manufacturing method, process, or other scientific advance.Geographical-monopoly based on the absence of other sellers in a certain geographic area Technological-production of a product from a single firm. Show Answer Correct Answer: B) Natural-production of a product from a single firmGeographical-monopoly based on the absence of other sellers in a certain geographic area Technological-ownership or control of a manufacturing method, process, or other scientific advance. 4. Mia, Noah, and David are discussing market structures in their economics class. They come across the term 'oligopoly'. What does it mean? A) A market structure characterized by a large number of small firms dominating the market. B) A market structure characterized by a single firm dominating the market. C) A market structure characterized by equal market share among all firms. D) A market structure characterized by a small number of large firms dominating the market. Show Answer Correct Answer: D) A market structure characterized by a small number of large firms dominating the market. 5. Which of the following is another word for equilibrium? A) Balance. B) Bargaining. C) Benchmark. D) Example. Show Answer Correct Answer: A) Balance. 6. A ..... Externality occurs when a cost of production or consumption falls on a 3rd Party. A) Negative. B) Neutral. C) Positive. D) None of above. Show Answer Correct Answer: A) Negative. 7. Who benefits the most from perfect competition? A) Sellers. B) Producers. C) Consumers. D) Suppliers. Show Answer Correct Answer: C) Consumers. 8. What is liability A) Being responsible for all financial losses. B) Meeting deadlines on time. C) Being able to pay employees. D) Lies. Show Answer Correct Answer: A) Being responsible for all financial losses. 9. What gives a company exclusive rights to sell a new product for a specific amount of time? A) Franchise. B) Barrier to Entry. C) Patent. D) Commodity. Show Answer Correct Answer: C) Patent. 10. A monopoly can price discriminate between two groups of consumers if each group has A) A large consumer surplus. B) A different willingness to pay. C) The same willingness to pay. D) The ability to resell the good to the other group. Show Answer Correct Answer: B) A different willingness to pay. 11. What is a feature of monopolistic competition, but not of a perfect market? A) A small number of buyers. B) Product differentiation. C) The existence of abnormal profits. D) The existence of barriers to entry. Show Answer Correct Answer: B) Product differentiation. 12. A benefit of a nonprofit corparation is that it A) Pays dividends to share holders. B) Has earnings are exempt from state and federal taxes. C) Is exempt from filing paperwork. D) Has limited liability for shareholders. Show Answer Correct Answer: B) Has earnings are exempt from state and federal taxes. 13. The market for milk is an example of perfect competition. Why? A) Sellers offer a nearly identical product. B) Anyone can start a dairy farm or leave the dairy business at any time. C) Many people buy and sell milk. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. A firm in the long run will make A) Losses. B) Economic Profit. C) Profits greater than MC. D) None of the above. Show Answer Correct Answer: B) Economic Profit. 15. The federal government has a number of policies that keep firms from controlling the price and supply of certain important goods. The government policies are known as ..... A) Predatory pricing. B) Deregulation. C) Trust busting. D) Antitrust laws. Show Answer Correct Answer: D) Antitrust laws. 16. Which type of business is the most common in the United states? A) Sole proprietorship. B) A conglomerate. C) A cooperative. D) A corporation. Show Answer Correct Answer: A) Sole proprietorship. 17. Agricultural goods are the best examples A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 18. In this market, a good is protected from competition by a patent. A) Perfect Competition. B) Pure Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: B) Pure Monopoly. 19. The most important characteristic that distinguishes one market structure from another is the size of the firms in the market A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 20. In this market structure there is little of no difference between the product no matter what company produces it? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. ← 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