This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 57 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is the best example of a public good? A) Highway system. B) Shopping mall. C) Country club. D) Movie theater. Show Answer Correct Answer: A) Highway system. 2. The market for happy face stickers is perfectly competitive, and the market price for these stickers is greater than the average total cost (ATC) of a typical firm.Which of the following is true about this market? A) Firms are charging prices higher than the marginal cost of producing stickers. B) Firms are producing an allocatively inefficient quantity and firms will exit this industry. C) Firms are earning positive economic profits and more firms will enter this industry. D) Firms are earning zero economic profits and the market is in long-run equilibrium. E) Firms are producing a cost-efficient quantity. Show Answer Correct Answer: C) Firms are earning positive economic profits and more firms will enter this industry. 3. What affect do excise taxes on production usually have on the supply curve? A) Decreases supply, supply curve shifts left. B) Increases supply, supply curve shifts left. C) Decreases supply, supply curve shifts right. D) Increases supply, supply curve shifts right. Show Answer Correct Answer: A) Decreases supply, supply curve shifts left. 4. A ..... is a product that is considered the same no matter who sells it, ex. corn. A) Commodity. B) Competition. C) Monopoly. D) Doodlewhig. Show Answer Correct Answer: A) Commodity. 5. Google controls 67% of the web search market. The company has grown and branched off into email, online maps, GPS tracking systems, online data storage and mobile phones. There are competitors like Microsoft and Yahoo, but they own just 18% and 11% of the market, respectively. Which market structure(s) best fit Google? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 6. A market structure in which a large number of firms all produce the same product and no single seller controls supply or prices A) Natural Monopoly. B) Government Monopoly. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 7. If a monopoly can perfectly price discriminate, what happens to the market? A) All consumers will pay more than a competitive market. B) There is no dead weight loss. C) All consumers will get better deals. D) The US government will enforce its antitrust laws. Show Answer Correct Answer: B) There is no dead weight loss. 8. What kind of market runs most efficiently when one firm supplies all the goods? A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 9. Your car was designed in the US but made in Europe, what type of enterprise is this? A) Multinational Corporation. B) General partnership. C) Domestic Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Multinational Corporation. 10. The use of the features of a product to differentiate the product is ..... ? A) Store layout. B) Non price competition. C) Price competition. D) Bait and switch. Show Answer Correct Answer: B) Non price competition. 11. What type of monopoly is based on ownership of control of a manufacturing method, process, or other scientific advance A) Natural Monopoly. B) Geographic Monopoly. C) Technological Monopoly. D) Government Monopoly. Show Answer Correct Answer: C) Technological Monopoly. 12. A trust is when monopoly is broken up in order to increase competition A) True. B) False. Show Answer Correct Answer: B) False. 13. ABC business is one of the few large firms in the country. If it increases his price, his competitors tend to ..... If it decreases his price, his competitors tend to ..... Hence, ABC will ..... its price in order to compete. A) Follow / follow / change. B) Not follow / follow / change. C) Not follow / follow / maintain. D) Follow / not follow / maintain. Show Answer Correct Answer: C) Not follow / follow / maintain. 14. In the housing market, a NPF moves the demand curve right. What happens to the allocation of resources? A) Moves left. B) Moves right. C) Increase. D) Decrease. Show Answer Correct Answer: C) Increase. 15. Liam, Olivia, and Aiden are running their own businesses in the same industry. They are discussing the impact of new businesses entering and existing businesses leaving their industry in the long run. What could be the impact of these changes on the industry equilibrium? A) Entry of new businesses like Liam's leads to a decrease in market supply. B) Only the most efficient businesses like Olivia's survive and remain in the industry. C) Exit of businesses like Aiden's leads to an increase in market supply. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Levi's jeans are part of ..... A) A monopoly. B) An oligopoly. C) Monopolistic Competition. D) None of above. Show Answer Correct Answer: C) Monopolistic Competition. 17. 5 cell phone makers control about 85% of the market for cell phones so they are in what market structure: A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 18. If there is something wrong a a food product who is responsible for informing the public? A) OSHA. B) FDA. C) FEMA. D) NLRB. Show Answer Correct Answer: B) FDA. 19. This market structure occurs when an industry is filled with many sellers who sell similar but differentiated products A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: C) Monopolistic Competition. 20. How do products in a monopolistic competition differ from the products sold in a perfectly competitive market? A) The products are homogeneous or idential. B) The products are similar but differentiated. C) All products could be the leading brand. D) The products are sold by only a few sellers. Show Answer Correct Answer: B) The products are similar but differentiated. ← 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