This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 85 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 85 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a shoe company pays a professional athlete to wear shoes it makes, it is an example of: A) Imperfect competition. B) Product differentiation. C) Nonprice competition. D) All of these are correct. Show Answer Correct Answer: C) Nonprice competition. 2. Price maker A) Does not have to consider competition when setting prices. B) Monopoly. C) Takes the market price. D) Both A and B. Show Answer Correct Answer: D) Both A and B. 3. Use the following headlines to answer the question below. Most common form of business organizationEasy to startDisadvantages:Limited access to funds The above headlines are all examples of A) Partnership. B) Monopoly. C) Corporation. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 4. Many teenagers in a particular neighborhood work as babysitters a few hours a week. They have different personalities and degrees of experience. What is the market structure for babysitting in that neighborhood? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: A) Monopolistic competition. 5. How is a traditional economy different from a market economy? A) A traditional economy makes what consumers want, but at a much lower price than a market economy. B) A traditional economy produces what people need to survive, but production in a market economy is driven by consumerdemand. C) A traditional economy is based on supply and demand, while a market economy is based on customs and survival needs. D) A traditional economy is driven by consumer demand, while a market economy is driven by the government. Show Answer Correct Answer: B) A traditional economy produces what people need to survive, but production in a market economy is driven by consumerdemand. 6. Price leadership ..... small sellers follow the price changes of the biggest sellers A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 7. What are the four different types of market structures? A) Perfect market, oligarchy, monopoly, and monopolistic. B) Perfect competition, imperfect competition, monopolistic, and perfect market. C) Perfect competition, monopolistic, oligopoly, and monopoly. D) Oligarchy, monopoly, imperfect competition, and socialism. Show Answer Correct Answer: C) Perfect competition, monopolistic, oligopoly, and monopoly. 8. NPF-The gov't cuts tariffs on Italian espresso machines. What curve is impacted in the cafe market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: D) Supply Right. 9. An agreement by a formal organization of producers to coordinate production and prices, is know as A) Price War. B) Cartel. C) Franchise. D) Economies of scale. Show Answer Correct Answer: B) Cartel. 10. Are price takers A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 11. A commercial bank buys a credit union. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: A) Horizontal. 12. Suppose that company XYZ produces an undifferentiated product in a single plant in a highly competitive market. The price is determined by market factors like demand and supply. A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 13. Which market structure is a price maker or price setter? A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: C) Monopoly. 14. Which of the following is NOT a condition for a perfect market? A) A large number of buyers and sellers. B) Buyers and sellers deal in identical products. C) Each buyer and seller acts independently. D) Buyers and sellers are reasonably well informed. E) Buyers and sellers must stay in their business unless authorized by the government to get out of that markets-ace. Show Answer Correct Answer: E) Buyers and sellers must stay in their business unless authorized by the government to get out of that markets-ace. 15. In order to sell more of its product, a monopolist must ..... A) Lobby the government for a subsidy. B) Lower its price. C) Advertise. D) Enact barriers to entry in related markets. Show Answer Correct Answer: B) Lower its price. 16. What is it called when the government removes a law or restriction? A) Regulation. B) Deregulation. Show Answer Correct Answer: B) Deregulation. 17. Which of the following is the most accurate statement about collusion by oligopolies? A) Oligopolies do not display mutual interdependence. B) Each oligopolist's revenue, cost, and demand curve can influence the others. C) Oligopolies produce more when they collude. D) None of above. Show Answer Correct Answer: B) Each oligopolist's revenue, cost, and demand curve can influence the others. 18. Business owners face unlimited liability for business debts in: A) A corporation. B) A partnership, but not in a sole proprietorship. C) A sole proprietorship, but not a partnership. D) Both a sole proprietorship and a partnership. Show Answer Correct Answer: D) Both a sole proprietorship and a partnership. 19. In a ..... you can be your own boss, but also have ..... personal liability. A) Corporation / unlimited. B) Sole proprietorship / unlimited. C) Partnership / limited. D) Sole proprietorship / limited . Show Answer Correct Answer: B) Sole proprietorship / unlimited. 20. In a general partnership, A) The business continues even if one partner dies. B) Partners must pay specific business taxes on stock they issue. C) Partners usually draw up legal papers called articles of partnership. D) Partners are only liable for the business' debt up to the amount of their investment. Show Answer Correct Answer: C) Partners usually draw up legal papers called articles of partnership. ← 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