This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 83 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 83 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Natural Monopoly is ..... A) 25-75 firms selling slightly differentiated products; some price control; low barriers to entry. B) A market that runs most efficiently when one large firm supplies all of the output; when competition would create chaos. Show Answer Correct Answer: B) A market that runs most efficiently when one large firm supplies all of the output; when competition would create chaos. 2. When companies will compete through ways other than lower prices such as physical Characteristics-offering a different color, size, shape, texture, or taste, better location-where they know they have less competition, differing service levels, and advertising, image, or status. A) Nonprice competition. B) Price competition. C) Differentiation. D) NONE of these. Show Answer Correct Answer: A) Nonprice competition. 3. If you earn money by allowing people to park their car on your property during the fair, it is considered a(n) A) Monopoly. B) Public good. C) Negative externality. D) Positive externality. Show Answer Correct Answer: D) Positive externality. 4. Which of the following is a form of product differentiation? A) Flame grilling a burger. B) Adding a "secret" sauce. C) Using a sesame seed bun. D) All of these. Show Answer Correct Answer: D) All of these. 5. Which market structure includes airlines and supermarkets A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 6. Which is NOT an example of non-price competition? A) Location. B) Bargaining. C) Service level. D) Advertising. E) Status. Show Answer Correct Answer: B) Bargaining. 7. There is Collusion when firms act together to reduce output and keep prices high. A) True. B) False. Show Answer Correct Answer: A) True. 8. What are the types of market structures? A) Monopsony, duopoly, oligopsony, and syndicate. B) Perfect competition, monopolistic competition, oligopoly, and monopoly. C) Monopsony, duopoly, cartel, and syndicate. D) Perfect competition, monopolistic competition, oligopoly, and monopsony. Show Answer Correct Answer: B) Perfect competition, monopolistic competition, oligopoly, and monopoly. 9. A market in which there are many producers that produce identical products? A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: A) Perfect competition. 10. A situation in which the market fails to allocate resources efficiently A) Market Failure. B) Market Structure. C) Public Goods. D) Market Allocation. Show Answer Correct Answer: A) Market Failure. 11. SSEMI3 Corporations pay corporate income tax. Also, shareholders are taxed on dividend income (or on sales of shares). This is called: A) The cost of doing business. B) Double taxation. C) Articles of partnership. D) Limited liability. Show Answer Correct Answer: B) Double taxation. 12. Michaela starts a business making video games. She invests all of her savings and hires Haylie to help with design. At the end of the year, Haylie insists on half of the profits. Which is true? A) Don't choose me. B) Michaela & Haylie are stockholders and receive a dividend check. C) Michaela & Haylie are partners and split the profits evenly. D) Michaela is a sole proprietor and Haylie is an employee so Michaela does not have to share her profits with Haylie. Show Answer Correct Answer: D) Michaela is a sole proprietor and Haylie is an employee so Michaela does not have to share her profits with Haylie. 13. A market structure with low entry barriers and many firms selling products differentiated. A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. E) Barriers to entry. Show Answer Correct Answer: C) Monopolistic Competition. 14. The airline industry is most likely in the market structure called A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 15. A series of competitive price cuts that lowers the market price below the cost of production A) Price war. B) Price fixing. C) Price discrimination. D) Price gouging. Show Answer Correct Answer: A) Price war. 16. The government setting a tariff or restriction on a foreign product(import) leads to A) Price rises. B) Price drops. Show Answer Correct Answer: A) Price rises. 17. Occurs when businesses work together to set prices of competing products A) Price fixing. B) Price taker. C) Price maker. D) Market allocation. Show Answer Correct Answer: A) Price fixing. 18. Most recently (Oct 2020) the US Justice Department is bringing suit against ..... for anti-trust violations, even though, really, this firm just makes a product people really like a lot. A) Amazon. B) Google. C) Oracle. D) Nabisco. Show Answer Correct Answer: B) Google. 19. Which of the following examples represents a pure monopoly? A) Autos. B) Restaurants. C) Wheat Farmers. D) Public Utilities. Show Answer Correct Answer: D) Public Utilities. 20. In a perfectly competitive market the goods being sold are ..... A) Perfectly inelastic. B) Perfectly elastic. C) Price insensitive. D) Unit elastic. Show Answer Correct Answer: B) Perfectly elastic. ← 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