This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 81 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 81 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a result from having a multi-national company? A) Introduce new technology. B) Generate jobs. C) Produce tax revenue for host countires. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Price movements at Disequilibrium when there is a surplus ..... ? A) Contraction along Demand & Supply. B) Expansion along Demand, Contraction along Supply. C) Contraction along Demand, Expansion along Supply. D) Expansion along Demand & Supply. Show Answer Correct Answer: B) Expansion along Demand, Contraction along Supply. 3. Which of the following is a government allowed monopoly? A) Airline industry. B) Utility industry. C) Oil production. D) Wheat production. Show Answer Correct Answer: B) Utility industry. 4. Walt Disney Company owns other companies; such as magazines, radios, and resorts. What sort of company is this? A) Sole proprietor. B) Non-profit. C) Partnership. D) Conglomerate. Show Answer Correct Answer: D) Conglomerate. 5. A utility (ex. a power company) which controls all services in a designated area is called? A) Trust. B) Cartel. C) Devised oligopoly. D) Natural monopoly. Show Answer Correct Answer: D) Natural monopoly. 6. All are ways to raise money to start a business except A) Savings. B) Borrow. C) Issue Stocks. D) Win the Lotto. Show Answer Correct Answer: C) Issue Stocks. 7. Market structure having all conditions of pure competition except for identical products A) Oligopoly. B) Purely Competitive. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 8. Reagan buys stock in Nick's company. Which is true? A) They are both owners. B) Neither of them have to pay taxes on dividends. C) Reagan has unlimited liability; Nick has limited liability. D) If Nick dies, the company has to close. Show Answer Correct Answer: A) They are both owners. 9. Economists define market structure according to four main characteristics:number of producers, similarity of products, ease of entry, and A) Brand loyalty. B) Control over prices. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: B) Control over prices. 10. What are the characteristics of monopolistic competition? A) Monopolistic competition is a market structure in which there are many firms selling identical products. B) Monopolistic competition is a market structure in which there are few firms selling identical products. C) Monopolistic competition is a market structure in which there are many firms selling differentiated products. D) Monopolistic competition is a market structure in which there is only one firm selling a product. Show Answer Correct Answer: C) Monopolistic competition is a market structure in which there are many firms selling differentiated products. 11. If a single diner in a tiny rural Florida town is charging a price for its pancakes where the demand is unit elastic, its marginal revenue for pancakes is A) Zero. B) Maximized. C) Undefined. D) Negative. E) Positive. Show Answer Correct Answer: A) Zero. 12. A cost or benefit that arises from production or consumption of a good or service that falls on someone other than the producer or consumer A) Public goods. B) Externality. C) Perfect Competition. D) Consumer Goods. Show Answer Correct Answer: B) Externality. 13. In this market, entry is difficult due to high costs, but not impossible: A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 14. Which is NOT a characteristic of monopolistic competition? A) Few sellers and many buyers. B) Similar but differentiated products. C) Limited control of prices. D) Freedom to enter/exit market. Show Answer Correct Answer: A) Few sellers and many buyers. 15. Consumers have more choice in an Oligopoly than in Monopolistic Competition A) True. B) False. Show Answer Correct Answer: A) True. 16. In this market structure, a business can offer low quality goods due to lack of competition A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Monopoly. 17. Which of the following characteristic is unique to an oligopoly? A) High barriers to entry. B) Imperfect knowledge. C) Mutual interdependence. D) Homogeneous product. Show Answer Correct Answer: C) Mutual interdependence. 18. An Oligopoly is when there are A) Few producers who control the market. B) Only one producer. C) An open market with plenty of producers. D) A market that hasn't yet been discovered. Show Answer Correct Answer: A) Few producers who control the market. 19. The demand curve for MONOPOLISTIC COMPETITON will be A) Highly inelastic. B) Highly elastic. C) Perfectly inelastic. D) Perfectly elastic. Show Answer Correct Answer: B) Highly elastic. 20. Which of the following markets is an example of a monopolistic competition? A) Phone carriers. B) Farmers. C) Airline industry. D) Dry cleaners. Show Answer Correct Answer: D) Dry cleaners. ← 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