This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 49 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A system in which the government allocates goods and services using factors other than price A) Price Floor. B) Regulation. C) Competitive Pricing. D) Rationing. Show Answer Correct Answer: D) Rationing. 2. In long run equilibrium, a perfectly competitive firm will tend to earn ..... A) Zero accounting profit. B) Zero economic profit. C) Positive economic profit. D) Negative economic profit. E) Negative accounting profit. Show Answer Correct Answer: B) Zero economic profit. 3. Coke and Pepsi are the main producers and control the soda market. This is an example of: A) Oligopoly. B) Monopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Oligopoly. 4. How will an earthquake leading to the deaths of hundreds in a large town affect food supply from neighbouring towns? A) It will increase supply. B) It will reduce supply. C) It will stop supply. D) It will make supply constant. Show Answer Correct Answer: A) It will increase supply. 5. The expenses a new business must pay before it can begin to produce and sell goods A) Start-Up Costs. B) Price War. C) Barrier to Entry. D) Collusion. Show Answer Correct Answer: A) Start-Up Costs. 6. The Sherman Act, the Clayton Act, and the Federal Trade Commission Act were all designed to ..... A) Ensure competition. B) Promote trusts. C) Create public goods. D) Extend mortgages. Show Answer Correct Answer: A) Ensure competition. 7. Advertising spent on differentiated products for monopolistically competitive firms is considered controversial in ..... A) Oligopolistic economies. B) Market-oriented economies. C) Closed market economies. D) None of above. Show Answer Correct Answer: B) Market-oriented economies. 8. Which of the following is an example of a barrier to entry in the airplane market? A) There are not enough sellers in the market. B) The high start-up costs and money needed to build a factory. C) Agreements among other airplane makers to keep prices high. D) None of above. Show Answer Correct Answer: B) The high start-up costs and money needed to build a factory. 9. He just died in Syria while America Spec Ops dogs chased him down. A) Abu Bakr al-Baghdadi. B) Scooby Yabba Dabba Doo. C) Usman bin Laden. D) Jeff. Show Answer Correct Answer: A) Abu Bakr al-Baghdadi. 10. Anything that hinders a business from entering the market A) Human Capital. B) Resource Labor. C) Barrier to Entry. D) None of above. Show Answer Correct Answer: C) Barrier to Entry. 11. The airwaves are filled with ads for different flavors of Doo-das. Each Doo-da isessentially the same, however the branding the different firms use has made themseem different. One firm markets "healthy Doo-das", another markets "chocolatecovered Doo-das", then there are the "Doo-das that are just for kids!" When going tothe store to buy your favorite flavor of Doo-da you notice that they are all essentiallythe same price, with very little variation between the brands, but some are a fewcents cheaper than others and they have been that way for years. On the news a fewyears back they ran a piece saying, "Doo-das are one of the easiest industries tobreak into with relatively few barriers to entry"How would you categorize the Doo-da market? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 12. In the 1950s in the United States, the car industry was dominated by GM, Ford and Chrysler. This is an example of: A) A monopoly. B) Monopolistic Competition. C) Perfect Competition. D) An oligopoly. Show Answer Correct Answer: D) An oligopoly. 13. The Supply Curve has moved right. Where is the new equilibrium price and quantity? A) Higher, higher. B) Lower, lower. C) Lower, higher. D) Higher, lower. Show Answer Correct Answer: C) Lower, higher. 14. The market structure for private aerospace travel would most resemble a: A) Monopolistic competition. B) Oligopoly. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: C) Monopoly. 15. The term for costs that cannot be avoided in the short run A) Total Cost. B) Fixed Cost. C) Average Cost. D) Variable Cost. Show Answer Correct Answer: B) Fixed Cost. 16. Which is a major advantage of the corporate form of business? A) The owners have an unlimited liability. B) The company has a limited life. C) Ownership is easily transferred from one party to another. D) The owners are guaranteed a profit. Show Answer Correct Answer: C) Ownership is easily transferred from one party to another. 17. Which of these companies are the most likely to participate in an oligopoly? A) Pharmaceutical company. B) Power company. C) An apple farmer. D) Frozen yogurt store. Show Answer Correct Answer: A) Pharmaceutical company. 18. Which of the following is NOT one of the conditions of competitive markets? A) Many actors (consumers and producers). B) Very different products. C) Widespread information available to consumers and producers. D) Low barriers to entry and exit of market. Show Answer Correct Answer: B) Very different products. 19. Market where a single seller dominates. A) Open market. B) Monopoly. C) Oligopoly. D) Luciopoly. Show Answer Correct Answer: B) Monopoly. 20. The intended effects of advertising are to increase the market share for a firm and to make the demand for the product more elastic A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. ← 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