This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 86 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 86 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Firms in a Monopolistic Competition Market are price takers A) True. B) False. Show Answer Correct Answer: B) False. 2. Which of the following best defines a monopoly? A) A market where a single individual owns all of the companies in the market. B) A market where a single entity is large enough to set prices without impacting demand. C) A market where there are many well-informed buyers and sellers. D) A market where one individual owns companies through the entire distribution line, from raw materials to distribution of finished goods. Show Answer Correct Answer: B) A market where a single entity is large enough to set prices without impacting demand. 3. Market structure with a few sellers. Sometimes they form illegal agreements to keep prices high. A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: B) Oligopoly. 4. Which agency has the authority to issue "cease and desist" orders? A) FDIC. B) FTC. C) FERC. D) EPA. Show Answer Correct Answer: B) FTC. 5. When a consumer is willing to buy a good or service. A) Elasticity. B) Demand. Show Answer Correct Answer: B) Demand. 6. Which of the following industries is most likely to be regulated by the government? A) Consumer products. B) Electrical services. C) Dry cleaning. D) Precious jewels. Show Answer Correct Answer: B) Electrical services. 7. What are the responsibilities of an entrepreneur? A) They assume risk. B) They recognize an opportunity. C) They test their product or service in a local market. D) They gather the resources they need to go into business. E) All of the above. Show Answer Correct Answer: E) All of the above. 8. These ar legal restrictions on how high or low a market price may go: A) Equilibrium. B) Shortage. C) Surplus. D) Price controls. E) Price ceiling. Show Answer Correct Answer: D) Price controls. 9. The type of organization that generates the most money is A) Corporations. B) Partnerships. C) Franchises. D) Cooperatives. Show Answer Correct Answer: A) Corporations. 10. Which of the following is not typical outcome of collusion? A) Price tends to be higher in the entire industries for consumers. B) Competition is removed from the market. C) There is an incentive to cheat to increase your own profits. D) It occurs in a perfectly competitive market. E) It occurs in an oligopoly only. Show Answer Correct Answer: D) It occurs in a perfectly competitive market. 11. Charlie's Cappuccinos, Melia's Mocha, and Jared's Java have agreed to collude and act like a monopoly by setting a price of $ 5 per cup of coffee.What is the most likely outcome? A) At least one firm will exit the industry. B) Industry profits will stay the same in the long run. C) Industry profits will be higher in the long run. D) At least one firm will violate the agreement and raise its price. E) At least one firm will violate the agreement and lower its price. Show Answer Correct Answer: E) At least one firm will violate the agreement and lower its price. 12. This type of market is the easiest to enter. A) Monopoly. B) Perfect Competition. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: B) Perfect Competition. 13. For price discrimination to take place, a market must meet these three conditions: A) All firms sell the same product; customers can be divided into groups; there are no barriers to entry. B) Firms have market power; customers can be divided into groups; buyers can't resell the product or service. C) All firms sell the same product; customers can be divided into groups; buyers can easily resell the good or service. D) None of above. Show Answer Correct Answer: B) Firms have market power; customers can be divided into groups; buyers can't resell the product or service. 14. Government regulations exist to discourage monopolies in the U.S. economy. A) True. B) False. Show Answer Correct Answer: A) True. 15. Which market structure is made up of a few large firms? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 16. A merger involving 4 or more unrelated companies A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: C) Conglomerate. 17. To determine whether an industry is an oligopoly, economists measure A) Increases in the price of goods. B) Concentration of market share. C) Product differentiation. D) Commodity measuring. Show Answer Correct Answer: B) Concentration of market share. 18. Monopolistic competition is different from pure competition in that A) Sellers control the price of their products. B) People have no choice in what to buy. C) New sellers cannot enter the market. D) Sellers have products which are a little different. Show Answer Correct Answer: D) Sellers have products which are a little different. 19. A firm in monopolistic competition is a price ..... A) MAKER. B) TAKER. Show Answer Correct Answer: A) MAKER. 20. Market failure occurs whenever A) Free markets fail to distribute resources efficiently. B) Goods fail to arrive at a market in a timely fashion. C) Government builds infrastructure. D) Voluntary exchange in a market fails to result in a sale. Show Answer Correct Answer: A) Free markets fail to distribute resources efficiently. ← 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