This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 88 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 88 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a command economy, who makes the decisions about what and how much to produce? A) Individual consumers. B) Foreign investors. C) Government or central authority. D) Private companies. Show Answer Correct Answer: C) Government or central authority. 2. Which of the following is NOT a condition for perfect competition? A) Many buyers and sellers participate in the market. B) Sellers offer a wide variety of products. C) Buyers and sellers are well informed about products. D) Sellers are able to enter and exit the market freely. Show Answer Correct Answer: B) Sellers offer a wide variety of products. 3. The cross elasticity of demand is the percentage change in demand for one good generated by a percentage change in price for another good A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. High barriers to entry and the lack of competition lead to governments usually regulating prices. A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 5. If the price of a firms variable input increases, which of the following will occur? A) The firm will decrease its level of production. B) The price of the good will decrease in the short run. C) The firms marginal costs will decrease at every level of output. D) The firms average fixed cost will decrease. E) More firms will enter the industry in the long run. Show Answer Correct Answer: A) The firm will decrease its level of production. 6. Which assumption states that firms in a perfectly competitive market are price takers? A) There are a large numbers of both buyers and sellers in the market. B) The product that each firm produces is homogenous. C) There is full knowledge of both profits and prices. D) There is freedom of entry and exit into and out of the industry. Show Answer Correct Answer: A) There are a large numbers of both buyers and sellers in the market. 7. Market structure in which only a few large sellers dominate and have ability to affect prices in an industry A) Oligopoly. B) Purely Competitive. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: A) Oligopoly. 8. The monopolist's demand curve is ..... whereas the perfectly competitive firm's demand curve is ..... A) Always downward sloping; always horizontal. B) Always horizontal; always downward sloping. C) The market demand curve; the industry demand curve. D) Fixed because it represents just one firm; variable because it is only a fraction of the industry's demand. E) Inelastic along its entire range; unit elastic along its entire range. Show Answer Correct Answer: A) Always downward sloping; always horizontal. 9. In natural monopolies, the price they can charge is A) Left up to the markets to decide. B) Controlled by the US government. C) Regulated by the Public Utilities Commission. D) Voted on by their stockholders. Show Answer Correct Answer: C) Regulated by the Public Utilities Commission. 10. Which market structure is characterized by a few major companies dominating the global market? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 11. Which resource is missing from the 4 resources? Material, Human, Information and ..... A) Group resources. B) Financial resources. C) Natural resources. D) Microeconomics. Show Answer Correct Answer: C) Natural resources. 12. Which of the following is a disadvantage of a corporation? A) Double Taxation. B) Limited Life. C) Unlimited Liability. D) Difficult to raise money. Show Answer Correct Answer: A) Double Taxation. 13. These costs are calculate by diving the cost by the output A) Fixed Cost. B) Average Cost. C) Total Cost. D) Variable Cost. Show Answer Correct Answer: B) Average Cost. 14. Elasticity of demand is greater in the short-run A) True. B) False. Show Answer Correct Answer: B) False. 15. ..... are money and other valuables belonging to an individual or business. A) Specialization. B) Business profits. C) Equity. D) Assets. Show Answer Correct Answer: D) Assets. 16. If Facebook and Twitter were to merge into one, what type of merger would this be? A) Horizontal. B) Vertical. Show Answer Correct Answer: A) Horizontal. 17. What market structure does Americans hate and tried to outlaw them? A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 18. Which of the following is NOT one of the three questions of economics? A) What to produce?. B) How to produce?. C) For whom to produce?. D) When to produce?. Show Answer Correct Answer: D) When to produce?. 19. Water company A) Natural monopoly. B) Government monopoly. C) Technological monopoly. D) Geographic monopoly. Show Answer Correct Answer: A) Natural monopoly. 20. The government's role in encouraging competition in the Free Enterprise system includes all of the following EXCEPT: A) Preventing monopolies. B) Providing public goods such as highways and the military. C) Ensuring consumers receive accurate information. D) Limiting the number of business that are allowed to open. Show Answer Correct Answer: D) Limiting the number of business that are allowed to open. ← 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