This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 90 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 90 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The U.S. is mostly a A) Centrally planned economy. B) A mixed economy mostly socialist economy. C) A mixed economy mostly market(capitalism) economy. D) None of above. Show Answer Correct Answer: C) A mixed economy mostly market(capitalism) economy. 2. The degree to which individuals change their demand/amount supplied in response to price or income changes. A) Elasticity. B) Substitute. C) Complements. D) Incentive. Show Answer Correct Answer: A) Elasticity. 3. A life insurance company merges with a major telecommunications company. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: C) Conglomerate. 4. A market structure characterized by firms producing similar but not identical products. (Jeans, Shoes) A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 5. Market structure is the framework within which a firm sells its ..... A) Output. B) Products. Show Answer Correct Answer: B) Products. 6. What item being sold is an example of an oligopoly A) Apples. B) Socks. C) Playstation gaming system. D) Shoes. Show Answer Correct Answer: C) Playstation gaming system. 7. Economists usually call an industry an oligopoly if A) The four largest firms produce at least 70-80 percent of the output. B) Only one product is available on the market. C) The ten largest firms produce less than 50 percent of the output. D) There is one firm that produces 100 percent of the output. Show Answer Correct Answer: A) The four largest firms produce at least 70-80 percent of the output. 8. An example of a natural monopoly is A) Company that makes pretzels. B) Your local water company. C) Your barber. D) A Midwest farm. Show Answer Correct Answer: B) Your local water company. 9. Most businesses are producing at or near capacity; the unemployment rate is very low; and consumer spending is brisk. Which part of the business cycle best describes these events? A) Peak. B) Expansion. C) Recession. D) Trough. Show Answer Correct Answer: A) Peak. 10. You have a taco truck to make extra money on the weekends. Your business license cost $ 200, you purchased the truck for $ 6000, you spent $ 300 for advertising, the taco ingredients cost $ 2 per taco, and you sell your tacos for $ 5 each. How many tacos do you need to sell to start making a profit? A) 1975. B) 2025. C) 2058. D) 2167. Show Answer Correct Answer: D) 2167. 11. A company bought out every step of the production process from beginning to end. They own the production, the transportation of the product, and the stores where it's sold. What is this describing? A) Conglomerate. B) Horizontal merger. C) Vertical merger. D) Partnership. Show Answer Correct Answer: C) Vertical merger. 12. Very Competitive Low Prices A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: C) Perfect Competition. 13. What is the main difference between a monopoly firm and a perfectly competitive firm in terms of quantity produced and price? A) Monopoly firm produces more quantity at a lower price. B) Perfectly competitive firm produces more quantity at a lower price. C) Monopoly firm produces less quantity at a higher price. D) Perfectly competitive firm produces less quantity at a higher price. Show Answer Correct Answer: C) Monopoly firm produces less quantity at a higher price. 14. Rubik's Cubes would be an example of ..... A) Perfect Competition. B) Oligopoly. C) Monopoly. D) Monopolistic Competition. Show Answer Correct Answer: C) Monopoly. 15. When two sides listen to suggestions from an objective third party but neither side must accept the suggestions A) Mediation. B) Binding arbitration. C) Injunction. D) Collective bargaining. Show Answer Correct Answer: A) Mediation. 16. Why was the Consumer Financial Protection Bureau (CFPB) created? A) To prevent another situation like the millions of low-quality home mortgages that were a major cause of the 2008-2009 Great Recession. B) To prevent people from borrowing money abroad to keep domestic banks profitable. C) To save the economy from greedy producers who offer inferior products at inflated prices. D) To offer alternatives to bank loans, which will help consumers by keeping down the cost of lending. Show Answer Correct Answer: A) To prevent another situation like the millions of low-quality home mortgages that were a major cause of the 2008-2009 Great Recession. 17. Natural monopoly A) Market structure in which the average costs of production are lowest when all output is produced by a single firm. B) A patent on a new product. C) Monopoly created and or owned by the government. D) A company has a monopoly because of its location. Show Answer Correct Answer: A) Market structure in which the average costs of production are lowest when all output is produced by a single firm. 18. Which type of business organization is managed by a Board of Governors? A) Sole Proprietorship. B) Partnership. C) Government. D) Corporation. Show Answer Correct Answer: D) Corporation. 19. Market structure A) Market structure having all conditions of pure competition except for identical products. B) Classification according to number and size of firm, type of product, and type of competition. C) Market structure in which the average costs of production are lowest when all output is produced by a single firm. D) Market structure characterized by a single producer in a market. Show Answer Correct Answer: B) Classification according to number and size of firm, type of product, and type of competition. 20. What is called a natural monopoly A) A company that only sells natural resources. B) A firm that produces the quantity at which marginal cost equals marginal revenue. C) A company that can supply goods at a lower price than two or more companies. D) A company that is the sole owner of key resources. E) Producers who minimize average total costs rather than maximize profits. Show Answer Correct Answer: C) A company that can supply goods at a lower price than two or more companies. ← 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