This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 73 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When a firm sees average production cost go down, they are experiencing ..... A) Economies of scale. B) Introductions of grandeur. C) Start up costs. D) Monopoly. Show Answer Correct Answer: A) Economies of scale. 2. True or False:Non-profit organizations do not pay taxes. A) True. B) False. Show Answer Correct Answer: A) True. 3. Which of the following is an example of monopolistic competition? A) Bananas. B) Public water. C) Grocery stores. D) Running shoes. Show Answer Correct Answer: D) Running shoes. 4. Some goods or services can by "consumed" by individuals who do not have to pay for them to enjoy them, and in fact there is no practical way to make people pay for them. As a result, the market does not allocate resources sufficiently to provide those services or goods. What are these goods and services known as? A) Public goods. B) Externalities. C) Market failures. D) Negative. Show Answer Correct Answer: A) Public goods. 5. In a monopoly which of the following is not true? A) Products are differentiated. B) There is freedom of entry and exit into the industry in the long run. C) The firm is a price maker. D) There is one main seller. Show Answer Correct Answer: B) There is freedom of entry and exit into the industry in the long run. 6. Entrepreneurs play an important role in the economic system of the United States becausethey A) Understand best the complex nature ofgovernment regulations. B) Develop new and more efficient ways to use resources. C) Are most aware of continuing demands for product reliability and consumer safety. D) Have the marketing skills needed to succeed in corporations. Show Answer Correct Answer: B) Develop new and more efficient ways to use resources. 7. What are the barriers to entry by monopolies? A) Start-up costs, skill requirements, and brand recognition. B) High barriers of entry, patents/copyrights, and mergers. C) Economies of scale, natural monopolies, and skill requirements. D) Limiting information, high barriers of entry, and specific product. Show Answer Correct Answer: B) High barriers of entry, patents/copyrights, and mergers. 8. In a competitive industry, if the price of a product is trending upwards for whatever reason, then it is likely A) The price will come back down because buyers don't want it to be too high. B) Sellers will start being more careless with their costs. C) The government will step in with effective price control measures. D) More firms will enter the market because they start seeing they can make some money there. Show Answer Correct Answer: D) More firms will enter the market because they start seeing they can make some money there. 9. If Mark Etts expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is standardized and that he will have no control over the price. The market structure he is MOST likely participating in is A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: C) Perfect competition. 10. This is where goods and services are illegally bought and sold in violation of price controls A) Flea Market. B) Black Market. C) Farmer's Market. D) Super Market. Show Answer Correct Answer: B) Black Market. 11. One seller A) Price Takers. B) Monopoly. C) Oligopoly. D) Price Fixing. Show Answer Correct Answer: B) Monopoly. 12. Many buyers and sellers participate in the market. 2. Sellers offer identical products. 3. Buyers and sellers are well informed about products. 4. Sellers are able to enter and exit the market freely. Low start-up costs and low technology needed. A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 13. The demand curve for a firm in perfect competition is vertical. A) True. B) False. Show Answer Correct Answer: B) False. 14. When businesses set prices below cost for a time for the sole purpose of putting their competitors out of business A) Price fixing. B) Market allocation. C) Predatory pricing. D) Perfect competition. Show Answer Correct Answer: C) Predatory pricing. 15. Standard Oil was controlled by which business leader? A) John D. Rockefeller. B) Andrew Carnegie. C) Cornelius Vanderbilt. D) JP Morgan. Show Answer Correct Answer: A) John D. Rockefeller. 16. Business can easily manipulate Prices A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: B) Monopoly. 17. Which of these economic goals is concerned with using resources wisely and reducing waste? A) Economic security. B) Economic equity. C) Economic freedom. D) Economic efficiency. Show Answer Correct Answer: D) Economic efficiency. 18. Karen uses both price and product differentiation to compete with her business rivals. What market structure does her business operate in? A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: C) Monopolistic Competition. 19. The expenses a firm must pay before it can begin to produce and sell goods A) Start-up costs. B) Barriers to entry. C) Entry fees. D) Copyrights. Show Answer Correct Answer: A) Start-up costs. 20. One DISADVANTAGE of a corporation is that A) It has limited liability. B) It has unlimited liability. C) It is taxed twice. D) None of above. Show Answer Correct Answer: C) It is taxed twice. ← 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