This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 56 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 56 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. True or False:The government can regulate businesses. A) True. B) False. Show Answer Correct Answer: A) True. 2. Barry and two associates have been operating a business that is not going well. Barry is stressed out because the company is over $ 200, 000 in debt and he knows that if it goes out of business, he and his two associates will have to pay it out of their own pockets. It sounds like Barry and his two associates have a A) Partnership. B) Corporation. C) Sole proprietorship. D) Stock. Show Answer Correct Answer: A) Partnership. 3. Which of the following statements correctly identifies a difference between monopoly and monopolistic competition? A) The monopoly firm charges a markup, but a monopolistically competitive firm does not. B) There are barriers to entry in monopoly, but not in monopolistic competition. C) There are many buyers in monopoly, but there are only a few buyers in monopolistic competition. D) There is only one firm in monopoly, but there are a few firms in monopolistic competition. E) The demand curve is downward sloping in monopoly, but not in monopolistic competition. Show Answer Correct Answer: B) There are barriers to entry in monopoly, but not in monopolistic competition. 4. Type of merger in which a business seeks to control the manufacturing process A) Vertical. B) Horizontal. C) Conglomeration. D) None of above. Show Answer Correct Answer: A) Vertical. 5. MARKET STRUCTURE IN WHICH A LARGE NUMBER OF FIRMS PRODUCE THE SAME PRODUCT A) OLIGOPOLY. B) MONOPOLY. C) PERFECT COMPETITION. D) MONOPOLISTIC COMPETITION. Show Answer Correct Answer: C) PERFECT COMPETITION. 6. The price of steel increases, and it now costs more to purchase a car. This is because auto manufacturers have had to raise their prices to make up for the increased cost of production. Is this macroeconomic or microeconomic? A) Macroeconomic. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 7. SSEMI3 b In an oligopoly, when one firm cuts prices this can lead to a: A) Price War. B) Collusion. C) Monopoly. D) Surplus of that good. Show Answer Correct Answer: A) Price War. 8. When the market is controlled by one business, it is called a ..... A) Capitalistic Market. B) Command Market. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 9. The use of advertising, giveaways, or other promotions designed to convince buyers that the product is somehow unique or better. A) Consumer choice. B) Nonprice competition. C) Imperfect choice. D) Product differentiation. Show Answer Correct Answer: B) Nonprice competition. 10. Under monopoly, the degree of control over price is: A) None. B) Same. C) Very considerable. D) None of the above. Show Answer Correct Answer: C) Very considerable. 11. A single-price monopoly transfers A) Economic profit to the government. B) Consumer surplus to producers. C) Economic profit to consumers. D) Producer surplus to consumers. E) Economic profit to deadweight loss. Show Answer Correct Answer: B) Consumer surplus to producers. 12. In a Perfect Competition, the biggest factor in setting price levels is ..... A) Supply/demand. B) The stock market. C) Celebrity endorsements. D) Price of substitute products. Show Answer Correct Answer: A) Supply/demand. 13. Their is only one supplier in this market structure. A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Pure / perfect competition. Show Answer Correct Answer: A) Monopoly. 14. If you live in the city of Tucson, there is a single firm who collects trash, the city. Which market structure is this? A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 15. In perfect competition, what happens to the price if a firm increases its output? A) The price increases. B) The price fluctuates. C) The price decreases. D) The price remains the same. Show Answer Correct Answer: C) The price decreases. 16. When competing businesses divide a market amongst themselves A) Price fixing. B) Market allocation. C) Predatory pricing. D) Joint venture. Show Answer Correct Answer: B) Market allocation. 17. What is a business owned by stockholders/investors but operated by others? A) Corporation. B) Sole proprietorship. Show Answer Correct Answer: A) Corporation. 18. What is the main difference between monopolistic competition and perfect competition in terms of product differentiation? A) Product differentiation. B) Advertising differentiation. C) Price differentiation. D) Location differentiation. Show Answer Correct Answer: A) Product differentiation. 19. Which of the following is NOT a market structure on the Leaving Cert course? A) Monopoly. B) Imperfect Competition. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: B) Imperfect Competition. 20. How does the government operate in a free enterprise economy? A) It takes a hands-off approach to business. B) It tells business, what to produce and what to sell. C) It interferes with business only when its profitable. D) It establishes laws & rules to maintain competition. Show Answer Correct Answer: D) It establishes laws & rules to maintain 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