This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An oligopoly has..... A) Many buyers and sellers. B) Only a few sellers. C) One seller. D) No control over price. Show Answer Correct Answer: B) Only a few sellers. 2. Bernice owns her own local gift shop. She acquired the necessary loans to open it, assumes all the financial risk herself, and makes all the decisions. It sounds like Bernice's business is a/an A) Partnership. B) Franchise. C) Corporation. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 3. What is an example of an oligopoly? A) Chip industry. B) Cellphone industry. C) Cookie industry. D) Milk industry. Show Answer Correct Answer: B) Cellphone industry. 4. Products that only differ slightly from their competition and sell at different prices in different markets A) Homogeneous products. B) Grade. C) Differentiated products. D) Perfect competition. Show Answer Correct Answer: C) Differentiated products. 5. When the government sets a price floor on earned income, it is called which of the following? A) Market equilibrium rate. B) Base-level wage. C) Minimum wage. D) Employment guarantee. Show Answer Correct Answer: C) Minimum wage. 6. Which company is an example of a monopoly? A) Coca Cola. B) Pepsi. C) DeBeers. D) AT&T. Show Answer Correct Answer: C) DeBeers. 7. Which of the following market types has all firms selling products so identical that buyers do not care from which frim they buy? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 8. Which of the following is NOT a merit good? A) Energy drinks. B) Education. C) Public libraries. D) Health services. Show Answer Correct Answer: A) Energy drinks. 9. ..... is a market structure characterized by a very large number of buyers and sellers of an identical product. A) Monopolistic competition. B) Oligopoly. C) Pure (perfect) competition. D) Monopoly. Show Answer Correct Answer: C) Pure (perfect) competition. 10. What type of liability do sole proprietorships have? A) Unlimited Liability. B) Limited Liability. C) Corporate Liability. D) No Liability. Show Answer Correct Answer: A) Unlimited Liability. 11. According to the principle of laissez-faire, A) Governments either should not be involved in the economy, or be as uninvolved as possible. B) Government should regulate business to create a more fair distribution of resources. C) Government should own a share of businesses to help earn profits and reduce taxes. D) Government should make most decisions concerning business. Show Answer Correct Answer: A) Governments either should not be involved in the economy, or be as uninvolved as possible. 12. When the few large sellers come together and fix prices A) Collusion. B) Price takers. C) Product differentitation. D) None of above. Show Answer Correct Answer: A) Collusion. 13. The organization of a market, based mainly on the degree of competition. A) Perfect Competition. B) Externality. C) Public goods. D) Market Structure. Show Answer Correct Answer: D) Market Structure. 14. Which is an example of a seller in a monopoly A) Standard Oil. B) Coke and Pepsi. C) Restaurants. D) Oranges in markets in Guadalajara. Show Answer Correct Answer: A) Standard Oil. 15. What are the two main types of competition in the market structures? A) Perfect competition and imperfect competition. B) Monopoly and Oligopoly. C) Local and Global. D) Supply and Demand. Show Answer Correct Answer: A) Perfect competition and imperfect competition. 16. As firms enter a monopolistically competitive market, profits of existing firms ..... A) Rise, and product diversity in the market increases. B) Rise, and product diversity in the market decreases. C) Decline, and product diversity in the market increases. D) Decline, and product diversity in the market decreases. Show Answer Correct Answer: C) Decline, and product diversity in the market increases. 17. Price Discrimination cannot persist under the following A) Perfect Competition. B) Monopolistic. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 18. This is a market dominated by a few large sellers A) Oligopoly. B) Monopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Oligopoly. 19. The greater the competition in the market, the greater the profit? A) Neither. B) True. C) False. D) None of above. Show Answer Correct Answer: C) False. 20. Mutual interdependence is a term economists use to describe any price change made by one firm in an oligopoly that affects the pricing behavior of other firms in the oligopoly A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books