This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following would be most likely be subject to government monopoly regulations? A) Computer software company. B) Local restaurant. C) Large oil company. D) Local cable company. Show Answer Correct Answer: D) Local cable company. 2. Business model in which the owner gets all of the profit A) Sole proprietorship. B) Corporation. C) Partnership. D) None of above. Show Answer Correct Answer: A) Sole proprietorship. 3. Which market structure is characterized by a few large firms dominating the market? A) Perfect competition. B) Oligopoly. C) Monopsons. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 4. A market with many well informed buyers and sellers, identical products, and free entry and exit A) Barriers to entry. B) Imperfect competition. C) Start up costs. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 5. Collusion/ Cartels occur in this market structure A) Monopolistic Competition. B) Perfect Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 6. This is an illegal act in which companies agree to set the price of their good or service the same. A) Commercialization. B) Collusion. C) Commodity. D) Barrier to entry. Show Answer Correct Answer: B) Collusion. 7. Number of Sellers:Are there many, few, or one seller(s) of the product? The more sellers there are, the more ..... the market is. A) Saturated. B) Competitive. C) Monopolistic. D) Limited. Show Answer Correct Answer: B) Competitive. 8. Which of the following is a table that shows the relationship between price and demand? A) Demand schedule. B) Demand curve. C) Demand function. D) Demand chart. Show Answer Correct Answer: A) Demand schedule. 9. A relevant market contains a set of goods whose cross elasticities with others in the set are relatively high and whose cross elasticities with goods outside the set are relatively low A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. All of the following are true about advertising except that it A) Plays a more effective role in monopolistically competitive markets than in perfectly competitive markets. B) Is used to reduce product differentiation. C) Is used to make a firm's demand curve more inelastic. D) Is used to increase a firm's market share. E) Is used to reduce consumer sensitivity to price changes. Show Answer Correct Answer: B) Is used to reduce product differentiation. 11. A seller in perfect competition has how much control over price? A) Total control. B) Considerable control. C) Little or no control. D) None of above. Show Answer Correct Answer: C) Little or no control. 12. Non-price Competition A) The process of increasing prices to increase profits. B) Tries to convince consumers that one product is better than another. C) The practice of lowering prices to attract customers. D) The use of discounts and promotions to increase sales. Show Answer Correct Answer: B) Tries to convince consumers that one product is better than another. 13. One business is in complete control of the market A) Monopolistic competition. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 14. In an oligopoly, what is the term used to describe when firms collude to maximize their joint profits? A) Monopoly. B) Collusion. C) Competition. D) Cartel. Show Answer Correct Answer: B) Collusion. 15. Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies have a little control over the price and there are relatively low barriers to entry. A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: B) Monopolistic competition. 16. The U.S. Postal Service is an example (first-class mail only) A) Pure Monopoly. B) Perfect Competition. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: A) Pure Monopoly. 17. Avery, Evelyn, and Grace are studying about different types of monopolies in their economics class. They learned about a type of monopoly that is created by the government. Can you recall what it is called? A) License. B) Technological monopoly. C) Franchise. D) Government monopoly. Show Answer Correct Answer: D) Government monopoly. 18. All of the following are examples of Oligopolies except? A) Cell phone companies. B) Auto manufacturers. C) Fast food restaurants. D) Breakfast cereal companies. Show Answer Correct Answer: C) Fast food restaurants. 19. Market structure is the selling environment where a firm ..... and sells its product. A) Buys. B) Produces. Show Answer Correct Answer: B) Produces. 20. Benjamin, Henry, and Anika are participating in a local farmers market. In this market, there are many other buyers and sellers as well. What type of market structure does this scenario represent? A) Oligopoly. B) Pure Competition. C) Monopoly. D) Monopolistic Competition. Show Answer Correct Answer: B) Pure Competition. 21. Which of the following is true about a perfectly competitive market? A) Firms produce standardized commodities. B) Not all sellers are fully informed about technology. C) One individual buyer or seller can usually influence price. D) It is difficult for firms to enter the market. Show Answer Correct Answer: A) Firms produce standardized commodities. 22. Under perfect competition, buyers and sellers A) Act independently. B) Deal in identical products. C) Must be reasonably informed about products. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. In this market, the producer is the least responsive to buyers' needs and wants. A) Pure Monopoly. B) Perfect Competition. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: A) Pure Monopoly. 24. All of the following are characteristics of oligopolies, EXCEPT A) They have limited control over price, except lowering them in price wars. B) They expect "customer loyalty.". C) They encourage innovation. D) The products have little to no differences. Show Answer Correct Answer: C) They encourage innovation. 25. If a good has relatively few substitutes to take its place, what kind of elasticity is it more likely to have? A) Inelastic. B) Unit-Elastic. C) Elastic. D) None of above. Show Answer Correct Answer: A) Inelastic. 26. Which type of market structure is the sweatshirt industry? A) Monopoly. B) Perfect competition. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 27. In which market structure is there NON-PRICE competition? A) Oligopoly and Monopoly. B) Oligopoly and Monopolistic Competition. C) Monopolistic Competition and Perfect Competition. D) Perfect Competition and Monopoly. Show Answer Correct Answer: B) Oligopoly and Monopolistic Competition. 28. Which market structure is characterized by many firms, differentiated products, and easy entry for new firms? A) Perfect competition. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 29. Government subsidies are more likely to shift a supply curve in which direction? A) No shift. B) Increase to the right. C) Decrease to the left. D) None of above. Show Answer Correct Answer: B) Increase to the right. 30. In which market structure does a firm have the greatest control over its product's price? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: B) Monopoly. ← 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