This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market structure has no control over price? A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 2. OPEC is an example of a A) Natural monopoly. B) Monopolistic competition. C) Cartel. D) Patent. Show Answer Correct Answer: C) Cartel. 3. Which of the following is not a type of legal monopoly? A) Natural monopoly. B) Geographic monopoly. C) Government monopoly. D) Standard Oil. Show Answer Correct Answer: D) Standard Oil. 4. An industry described as a monopolistic competition would have most likely have A) Similar but differentiated products. B) Normal profits in the long run. C) One firm with no close rivals. D) No opportunities of collusive behavior. Show Answer Correct Answer: A) Similar but differentiated products. 5. Which of the following is not a characteristic of an oligopoly? A) Many sellers. B) Not as much competition-firms have some control over prices. C) Lots of advertising. D) Many barriers to entry. Show Answer Correct Answer: A) Many sellers. 6. Restrictions on the entry of a new firm into an industry A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. E) Barriers to entry. Show Answer Correct Answer: E) Barriers to entry. 7. Government regulations to keep competition fair and protect consumers change the economic system from a market system to a: A) Modified free market economy. B) Command economy. C) Traditional economy. D) None of above. Show Answer Correct Answer: A) Modified free market economy. 8. Limited Liability means that stockholders can lose their investment if the corporation fails. A) True. B) False. Show Answer Correct Answer: A) True. 9. Imagine a product in which consumers would purchase it regardless of the price. Whether it be $ 5 or $ 500 they would continue to purchase it. How would you describe the demand for this product? A) Perfectly inelastic. B) Perfectly competitive. C) Perfectly elastic. D) Perfectly monopolistic. Show Answer Correct Answer: A) Perfectly inelastic. 10. Laws in cities that restrict where businesses can operate. A) Anti-Trust. B) Collusion. C) Zoning. D) Patent. Show Answer Correct Answer: C) Zoning. 11. The monopoly firm exists because of ..... A) 1. government protection. B) 2. Monopoly in factors. C) 3.Large production. D) All of these. Show Answer Correct Answer: D) All of these. 12. Which market structure involves on ONE firm and has VERY HIGH barriers to entry? A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Monopoly. 13. Which of the following products are usually found in imperfect competition? A) Bananas. B) Onions. C) Firewood. D) Shoes. Show Answer Correct Answer: D) Shoes. 14. Which market structure best describes a market with homogeneous products and many sellers? A) Oligopoly. B) Geographic monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 15. A government license that gives the inventor of a new product the exclusive right to produce and sell it A) Patent. B) License. C) Market power. D) Economies of scale. Show Answer Correct Answer: A) Patent. 16. True or False:The United States government encourages more monopolies. A) True. B) False. Show Answer Correct Answer: B) False. 17. A way to attract customers without lowering prices is A) Barriers to entry. B) Collusion. C) Cartel. D) Nonprice competition. Show Answer Correct Answer: D) Nonprice competition. 18. What is the condition for allocative efficiency? A) P = AC. B) P = MC. C) P = MR. D) P = AR. Show Answer Correct Answer: B) P = MC. 19. Which type of business model includes buying large bulk items for their members? A) Non-profit. B) Cooperative. C) Monopoly. D) Multi-national. Show Answer Correct Answer: B) Cooperative. 20. In a perfectly competitive market, how many producers are there? A) A few. B) A large number. C) Only one. D) None. Show Answer Correct Answer: B) A large number. ← 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 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books