This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 79 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 79 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why does the government regulate natural monopolies? A) To increase competition in the market. B) To prevent the monopoly from charging excessively high prices. C) To ensure the monopoly provides an adequate, high-quality amount of the product. D) All of the above are possible reasons for regulation. Show Answer Correct Answer: D) All of the above are possible reasons for regulation. 2. Cartels are illegal in the United States. A) True. B) False. Show Answer Correct Answer: A) True. 3. If a firm must lower its price to sell more of a good, which of the following must also be true? A) Its marginal revenue curve is the same as its marginal cost curve. B) Its marginal revenue curve is upward-sloping. C) Its marginal revenue curve is lower than its demand curve. D) Its marginal revenue curve is equal to its demand curve. E) Its marginal revenue curve is higher than its average total cost curve. Show Answer Correct Answer: C) Its marginal revenue curve is lower than its demand curve. 4. True or False:Firms An oligopoly is a market dominated by just a few firms who have no control over the price of their products A) True. B) False. Show Answer Correct Answer: B) False. 5. Coke and Pepsi are examples of this type of market: A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 6. What is the unethical and dangerous behavior that cartels engage in? A) Competition. B) Coercion. C) Coordination. D) Collusion. Show Answer Correct Answer: D) Collusion. 7. Anika, Sophia, and Aria are playing a game of 'Market Masters'. They are discussing different market structures. Anika asks, 'What is perfect competition?' Can you help them answer? A) Perfect competition is a market structure where there are many buyers and sellers, differentiated products, limited information, high barriers to entry or exit, and individual firms have control over the market price. B) Perfect competition is a market structure where there are few buyers and sellers, heterogeneous products, imperfect information, high barriers to entry or exit, and individual firms have control over the market price. C) Perfect competition is a market structure where there are few buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and individual firms have control over the market price. D) Perfect competition is a market structure where there are many buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and no individual firm has control over the market price. Show Answer Correct Answer: D) Perfect competition is a market structure where there are many buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and no individual firm has control over the market price. 8. Markets where many businesses sell products that are similar, but not identical A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic competition. 9. If Annie & Skye need to raise a lot of capital, which type of organization might they choose & what tradeoff might they make? A) Partnership; gain $ & give up limited liability. B) Partnership; gain $ & give up most control. C) Corporation;gain $ & give up most control. D) Corporation; gain $ & give up unlimited life. Show Answer Correct Answer: C) Corporation;gain $ & give up most control. 10. Which of the following is NOT a form of non-price competition? A) Location. B) Physical characteristics. C) Advertising. D) Discounts. Show Answer Correct Answer: D) Discounts. 11. Redcues extreme ups and downs in our economy and helps to keep prices from changing too quickly A) Security. B) Growth. C) Full employment. D) Stability. Show Answer Correct Answer: D) Stability. 12. Which industry best exemplifies an oligopoly? A) Fast-food. B) Farming. C) Women's clothing. D) Publishing. Show Answer Correct Answer: A) Fast-food. 13. Businesses that have no control over price A) Price Takers. B) Monopoly. C) Oligopoly. D) Price Fixing. Show Answer Correct Answer: A) Price Takers. 14. What is the purpose of the Consumer Financial Protection Bureau? A) To provide oversight and guidance in the financial lending industry. B) To oversee the safety of food and pharmaceuticals. C) To prevent sellers from making false claims about their products. D) To require corporations to share financial information with their stockholders. Show Answer Correct Answer: A) To provide oversight and guidance in the financial lending industry. 15. When the government creates a law used to protect individuals this is know as: A) Deregulation. B) Regulation. C) Positive Externality. D) Preventing a market failure. Show Answer Correct Answer: B) Regulation. 16. In monopolistic competition, how do consumers differentiate between the goods produced by different firms? A) Price difference. B) Brand names and packaging. C) Taste difference. D) All of the above. Show Answer Correct Answer: B) Brand names and packaging. 17. Which market structure has a single seller with no close substitutes? A) Oligopoly. B) Perfect competition. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 18. Which type of monopoly is allowed to exist because there is only one company legally allowed to provide this service? A) Natural Monopoly. B) Geographic Monopoly. C) Government Monopoly. D) Technological Monopoly. Show Answer Correct Answer: C) Government Monopoly. 19. Lowest barriers to entry A) Monopoly. B) Oligopoly. C) Perfect competition. D) None of above. Show Answer Correct Answer: C) Perfect competition. 20. The right to sell a good or service within an exclusive market A) Franchise. B) Branding. C) Free market. D) Open market. Show Answer Correct Answer: A) Franchise. ← 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