This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mr. Simpson is liable for all the debts of his company. Mr.Simpson has which type of business organization? A) Monopoly. B) Perfect competition. C) Corporation. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 2. There are few sellers in this market A) Oligopoly. B) Monopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Oligopoly. 3. What is the term used to describe a factor that prevents a firm from entering into the market? A) Opportunity cost. B) Imperfect competition. C) Barrier to entry. D) Private property. Show Answer Correct Answer: C) Barrier to entry. 4. The fast food hamburger restaurant industry is a great example of a monopolistically competitive industry because each restaurant has a ..... on their own brand even though they all sell hamburgers of some kind. A) Monopoly. B) Oligopoly. C) Competitive advantage. D) Subsidy. Show Answer Correct Answer: A) Monopoly. 5. Is the first market structure incorporated or unincorporated? A) Incorporated. B) Unincorporated. Show Answer Correct Answer: A) Incorporated. 6. Why doesn't the market system work to provide street lighting and other public goods? A) There is no easy to charge individual users. B) Too few of these services are available. C) Voters put pressure on local governments. D) Important needs cannot be left to chance. Show Answer Correct Answer: A) There is no easy to charge individual users. 7. SSEMI3 b Mr. Coleman has only one choice (GA POWER) for electricity at his house, Ga Power. This is an example of a A) Technological Monopoly. B) Monopoly. C) Oligopoly. D) None of above. Show Answer Correct Answer: B) Monopoly. 8. Which of the following is NOT an oligopoly regulation A) No different pricing. B) No price fixing. C) No cartels. D) No collusion. Show Answer Correct Answer: A) No different pricing. 9. To reduce regulations A) Declassify. B) Lower tax rates. C) Anti-trust laws. D) Deregulate. Show Answer Correct Answer: D) Deregulate. 10. Even though they create a monopoly position, patent rights benefit society, in the form of: A) Patents can be owned by anyone, not just the government. B) Patents reduce inefficiencies. C) Patents make selling prices cheaper. D) Patents prevent one company from controlling key inputs. E) Patents encourage creative behavior. Show Answer Correct Answer: E) Patents encourage creative behavior. 11. Why is it important to understand different market structures? A) To study the dynamic world of economics. B) To gain insights into pricing and consumer choices. C) To comprehend how businesses operate and compete. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. True or False:The US government has no laws against unfair competition in the market. A) False. B) True. Show Answer Correct Answer: A) False. 13. In which market structure is a firm the "price setter?" A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 14. Which term describes the 'unseen' barriers to advancement? A) Glass Ceiling. B) Price Ceiling. C) Price Floor. D) Equilibrium Wage. Show Answer Correct Answer: A) Glass Ceiling. 15. Which of the following markets does NOT allow firms any market power? A) Oligopoly. B) Pure Monopoly. C) Perfect Competitive. D) Monopolistic Competition. Show Answer Correct Answer: C) Perfect Competitive. 16. Follows these conditions:many buyers/sellers; all sell same product; buyers/sellers are informed; free market entry/exit A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: B) Perfect competition. 17. Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. He will need to hire someone for that. The form of business ownership that Joe might consider establishing is a(n) A) Corporation. B) Monopoly. C) Partnership. D) Sole proprietorship. Show Answer Correct Answer: C) Partnership. 18. What is the main characteristic of monopolistic competition? A) Firms produce identical products and have no control over prices. B) Firms produce similar, but not identical products, resorting to non-price competition. C) Only one firm produces unique products, having complete control over prices and production. D) Sellers and buyers are well informed and there are no barriers for entry or exit. Show Answer Correct Answer: B) Firms produce similar, but not identical products, resorting to non-price competition. 19. Price ceilings are always ..... equilibrium price. A) Above. B) Below. C) Equal to. D) None of above. Show Answer Correct Answer: B) Below. 20. In which market structure do firms have no control over the price of their products? A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: B) Perfect competition. 21. Which of the following has two sellers and many buyers? A) Perfect competition. B) Oligopoly. C) Monopsons. D) Duopoly. Show Answer Correct Answer: D) Duopoly. 22. Ramon decided to open his own software business. He borrowed money from a bank to buy computers and office equipment, and he hired one assistant. What is one DISADVANTAGE of Ramon's type of business organization? A) Limited liability. B) Flexibility. C) Unlimited liability. D) Ease of start-up. Show Answer Correct Answer: C) Unlimited liability. 23. Would car companies be in the oligopoly industry A) Yes. B) No. Show Answer Correct Answer: A) Yes. 24. All of the following are good things about competition in a market EXCEPT A) Requires some firms to receive larger subsidies. B) Keeps prices down. C) Ensures managers of firms take good care of our valuable resources. D) Fosters production of products that will actually make our lives better. Show Answer Correct Answer: A) Requires some firms to receive larger subsidies. 25. Which of the following is an example of a merger? A) An individual buys a franchise. B) A company sells bonds to raise money for expansion. C) Two individuals form a partnership. D) A company combines with a company that supplies it with raw materials. Show Answer Correct Answer: D) A company combines with a company that supplies it with raw materials. 26. Which is the market in which supply and demand establish the market price? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 27. A product, such as petroleum or milk, that is considered the same no matter who produces or sells it A) Identical product theory. B) Identical Assets. C) Commodity. D) Price War. Show Answer Correct Answer: C) Commodity. 28. There are many buyers AND sellers in this market structure. A) Monopolistic competition. B) Pure/perfect competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Pure/perfect competition. 29. Which is not a demand side Non-Price Factor? A) All of the above. B) Technological Change. C) Price of Inputs. D) Climactic Conditions. Show Answer Correct Answer: A) All of the above. 30. Barriers to Entry:Are there any obstacles that prevent other firms from entering the market for the good? If barriers are weak or absent from the market, the market will be more ..... A) Monopolistic. B) Saturated. C) Unprofitable. D) Competitive. Show Answer Correct Answer: D) Competitive. ← 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