This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If you buy abondfrom a corporation, you A) Are an investment banker. B) Benefit only if the company earns a profit. C) Are one of the company's many owners. D) Are a creditor of the corporation-you have loaned the company money. Show Answer Correct Answer: D) Are a creditor of the corporation-you have loaned the company money. 2. Pure / perfect competition and monopolistic competition are the same because ..... A) They have unique products. B) The have identical products. C) They have many buyers and sellers. D) They have many buyers. Show Answer Correct Answer: D) They have many buyers. 3. Type of Monopoly is based on Laws and regulations A) Technological. B) Geographic. C) Natural. D) Government. Show Answer Correct Answer: D) Government. 4. How many different types of monopolies are there? A) 5. B) 4. C) 8. D) 10. Show Answer Correct Answer: B) 4. 5. Fixed costs change with the amount of output for a business. A) True. B) False. C) It depends on the type of business . D) None of above. Show Answer Correct Answer: B) False. 6. It is the oldest form of business organization and the most common A) Sole proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: A) Sole proprietorship. 7. Which one of these government actions is NOT part of Regulation? A) Eliminating licenses and other barriers to entry. B) Breaking up monopolies and trusts. C) Blocking mergers that may create unfair market conditions. D) Challenging business practices that limit competition. Show Answer Correct Answer: A) Eliminating licenses and other barriers to entry. 8. Public utilities are an example of a ..... monopoly. A) Government. B) Geographic. C) Natural. D) Technological. Show Answer Correct Answer: C) Natural. 9. Which is NOT considered an unfair business practice? A) Price fixing. B) Market allocation. C) Predatory pricing. D) Competitive pricing. Show Answer Correct Answer: D) Competitive pricing. 10. Reduced or removes government control of business A) Public Disclosure. B) Deregulation. C) Market Structure. D) Regulation. Show Answer Correct Answer: B) Deregulation. 11. It is the impact of one's behavior on a bystander. A) Negative externality. B) Positive externality. C) Externality. D) Demerit good. Show Answer Correct Answer: C) Externality. 12. The disadvantages of this business organization include unlimited liability, difficulty raising financial capital, difficulty attracting qualified employees, and having a limited life A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: A) Sole Propriotorship. 13. What is the main difference between monopolistic competition and oligopoly? A) Advertising. B) Monopoly. C) The prices. D) The barriers to enter facing new firms. Show Answer Correct Answer: D) The barriers to enter facing new firms. 14. In this market structure there are many buyers and sellers with identical products A) Monopolistic competition. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect competition. 15. Pure competition and monopoly are ..... A) Opposites. B) The same. C) Should not be compared. D) Almost the same. Show Answer Correct Answer: A) Opposites. 16. Government issued right to operate a business A) License. B) Price discrimination. C) Franchise. D) Patent. Show Answer Correct Answer: A) License. 17. The most extreme form of imperfect competition: A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 18. Which is not a supply side Non-Price Factor? A) All of the above. B) Price of Substitutes. C) Price of Complementary Products. D) Consumer Sentiment. Show Answer Correct Answer: A) All of the above. 19. This market structure has many firms, identical products, no barriers to entry, & price takers A) Monopoly. B) Perfect Competition. Show Answer Correct Answer: B) Perfect Competition. 20. Which of the is an example of a legal monopoly? A) Yahoo. B) Prescription drugs. C) Disney World. D) None of above. Show Answer Correct Answer: B) Prescription drugs. 21. Which market structure did the DeBeers Diamond industry fall under? A) Monopolistic Competition. B) Oligopoly. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 22. As the price goes up, what happens to the quantity demanded? A) Increases. B) Decreases. Show Answer Correct Answer: B) Decreases. 23. One of the defining characteristics of a perfectly competitive market is ..... A) A small number of sellers. B) A large number of buyers and a small number of sellers. C) An identical product. D) Significant advertising by firms to promote their products. Show Answer Correct Answer: C) An identical product. 24. What condition is present in perfect competition but missing in monopolistic competition? A) Marginal analysis. B) Identical products. C) Freedom of entry and exit. D) Very large number of buyers and sellers. Show Answer Correct Answer: B) Identical products. 25. John opens a bubble tea shop in his neighbourhood. As the trend of drinking bubble tea rises, more similar shops started opening. What will happen to John's demand curve? A) No change. B) Shifts right. C) Shifts left. D) None of above. Show Answer Correct Answer: C) Shifts left. 26. What is not a requirement for the law of diminishing returns to operate in the short run? A) Average returns to a variable factor will increase then fall. B) Inputs of all of the factors will be variable. C) At least one factor will be fixed in quantity. D) Marginal product of a variable factor will increase then fall. Show Answer Correct Answer: B) Inputs of all of the factors will be variable. 27. What is the most common form of business? A) LLC. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: C) Sole Proprietorship. 28. Who defined economics as an inquiry into the nature and causes of the wealth of nations? A) Adam Smith. B) John Stuart Mill. C) Jean Stuart Mills. D) Alfred Marshall. Show Answer Correct Answer: A) Adam Smith. 29. A merger that joins companies that produce very similar products is called ..... A) Horizontal merger. B) Vertical merger. C) Conglomerate. D) Corporation. Show Answer Correct Answer: A) Horizontal merger. 30. On an average shopping trip, a consumer's eye lingers on a product for only about 2.5 seconds. In order to stay competitive, companies experiment with new formulas, along with the color and size of the product's packaging. These research and development costs can range from $ 100, 000 for adding a new color to an existing product line to millions of dollars for the creation of a new product. According to the passage, companies are trying to compete through A) Economies of scale. B) Collusion. C) Price-fixing. D) Non-price competition. Show Answer Correct Answer: D) Non-price competition. ← 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