This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 53 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. There are very high fixed costs involved in producing whatnots and over time one firm has come to dominate the market. There in almost no variety in the quality or appearance of the whatnots, but consumers continue to purchase them because they are vital to a life of comfort and happiness. Thankfully the government has stepped in to ensure that the price of whatnots is low and that no other firm can disrupt the production.How would you categorize the market for whatnots? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 2. In monopolistic competition, each firm supply a small part of the market. This occurs because A) There are barriers to entry. B) There are no barriers to entry. C) There are a large number of firms. D) Firms produce differentiated goods. Show Answer Correct Answer: C) There are a large number of firms. 3. Formal organization of sellers that agree to act together to set prices and limit output A) Monopoly. B) Price maker. C) Oligopoly. D) Cartel. Show Answer Correct Answer: D) Cartel. 4. Who is the demander is the labor market? A) Consumers. B) Workers. C) Companies. D) None of above. Show Answer Correct Answer: C) Companies. 5. The post office or fire department is an example of a ..... monopoly. A) Technological. B) Government. C) Geographic. D) Natural. Show Answer Correct Answer: B) Government. 6. Market where a few large sellers control production of a good or service. A) Monopoly. B) Oligopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: B) Oligopoly. 7. Loganville has 3 main grocery stores, this is an example of which market? A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 8. Which market structure has the MOST competition? A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 9. Why are cartels nonbinding in the U.S.A.? A) They're illegal. B) They're dangerous. C) They're not used. D) They're too competitive. Show Answer Correct Answer: A) They're illegal. 10. Which of the following is NOT a feature of monopolistic competition? A) Identical products. B) Numerous buyers. C) Product differentiation. D) Numerous sellers. Show Answer Correct Answer: A) Identical products. 11. How does a monopoly affect consumer choice and competition? A) Restricts consumer choice and reduces competition. B) Increases consumer choice and encourages competition. C) No effect on consumer choice and competition. D) Restricts consumer choice and promotes competition. tagsSSEMI3. Show Answer Correct Answer: A) Restricts consumer choice and reduces competition. 12. A market failure occurs when A) A particular industry fails to make an adequate profit in a given year. B) A single company does not supply more than 90 percent of the total output for a good or service. C) Goods and services are not allocated in the most efficient way. D) The economy experiences a prolonged downturn and unemployment is extremely high. Show Answer Correct Answer: C) Goods and services are not allocated in the most efficient way. 13. Trinidad and Tobago Cement Limited controls about 80% of the cement industry and used to be the ONLY provider of cement. This is an example of A) A monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: A) A monopoly. 14. Ordering market structures according to the ease of entry for new firms from easy entry to more difficult entry, we have A) Monopoly, oligopoly, monopolistic competition, perfect competition. B) Perfect competition, oligopoly, monopolistic competition, monopoly. C) Perfect competition, oligopoly, monopolistic competition, natural monopoly. D) Perfect competition, oligopoly, monopoly, monopolistic competition. E) Perfect competition, monopolistic competition, oligopoly, monopoly. Show Answer Correct Answer: E) Perfect competition, monopolistic competition, oligopoly, monopoly. 15. Which market structure can differentiate its products in order to slightly change its prices? A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic competition. 16. If ABM firm sells its differentiated products in a market, with many sellers and buyers, the structure is a/an A) Monopolist. B) Oligopolist. C) Perfect competitor. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 17. What is wage discrimination A) Setting a wage that employers can't go below. B) When unions negotiate for higher wages. C) Paying someone differently based on their race or gender. D) Unemployment. Show Answer Correct Answer: C) Paying someone differently based on their race or gender. 18. Which is a difference in how economic decisions are made in a mixed economy and a market economy? A) Consumers make all economic decisions in a mixed economy, while government makes all economic decisions in a marketeconomy. B) Government makes all economic decisions in a mixed economy, while consumers make all economic decisions in a marketeconomy. C) Government and consumers make economic decisions in a mixed economy, while consumers make economic decisions ina market economy. D) Consumers make economic decisions in a mixed economy, while consumers and government make economic decisions ina market economy. Show Answer Correct Answer: C) Government and consumers make economic decisions in a mixed economy, while consumers make economic decisions ina market economy. 19. Jackson, Hannah, and James are discussing the local farmers market. They agree that the primary characteristic of this market, which is a purely competitive market, is what? A) Efficiency. B) Control over price. C) Differentiated products. D) Barriers to entry. Show Answer Correct Answer: A) Efficiency. 20. What is Price Discrimination? A) Grouping customers together based on their wants. B) Division of customers into groups based on how much they will pay for a good. C) Charging everyone the same price for goods. D) None of above. Show Answer Correct Answer: B) Division of customers into groups based on how much they will pay for a good. ← 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