This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The government does not regulate mergers between private companies. A) True. B) False. Show Answer Correct Answer: B) False. 2. Business organization that has the least difficulty raising money A) Sole proprietorship. B) Partnership. C) Corporation. D) Wholesalers. Show Answer Correct Answer: C) Corporation. 3. Monopoly created and/or owned by the government A) Economies of scale. B) Public monopoly. C) Government monopoly. D) Monopoly. Show Answer Correct Answer: C) Government monopoly. 4. A monopolist's demand curve will be horizontal at the market price. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 5. Which of the following industries have been deregulated in recent years? A) Pharmaceuticals. B) Low cost housing. C) Steel. D) Airlines. Show Answer Correct Answer: D) Airlines. 6. DeBeers has a monopoly in the diamond market because it A) Is a natural monopily. B) Ihas been granted a government license. C) They have a patert of the excavation process for diamonds. D) Bought up a significant portion of diamond reserves. Show Answer Correct Answer: D) Bought up a significant portion of diamond reserves. 7. Most large businesses are A) Cooperatives. B) Sole proprietorships. C) General partnerships. D) Corporations. Show Answer Correct Answer: D) Corporations. 8. A product that is the same no matter who produces it such at gasoline, notebook paper, milk, etc. Commodity's are sold in perfectly competitive markets. A) Commodity. B) Service. C) Perfect Product. D) Good. Show Answer Correct Answer: A) Commodity. 9. What level of government is most closely associated with zoning? A) Federal. B) Interstate. C) State. D) Local. Show Answer Correct Answer: D) Local. 10. Police protection is an example of a ..... good and apples are an example of a ..... good. A) Public; Public. B) Public; Private. C) Private; Public. D) Private; Private. Show Answer Correct Answer: B) Public; Private. 11. What are the advantages of a monopoly? A) Increased consumer choice, lower prices, and fair competition. B) Greater innovation, improved quality, and increased efficiency. C) More job opportunities, economic growth, and market stability. D) Ability to set higher prices, control the market, and enjoy higher profits without competition. Show Answer Correct Answer: D) Ability to set higher prices, control the market, and enjoy higher profits without competition. 12. This type of monopoly exists because it is efficient to allow one producer to be the only provider. Xcel energy being the sole provider of electricity in my neighborhood is an example of this. A) Natural Monopoly. B) Patent/copy right. C) Resource Monopoly. D) Franchise. Show Answer Correct Answer: A) Natural Monopoly. 13. Governmental Regulatory Agency in charge of Clean air and water A) EPA. B) FDA. C) FTC. D) SEC. Show Answer Correct Answer: A) EPA. 14. Oligopoly is a market structure with one very large firm A) False. B) True. Show Answer Correct Answer: A) False. 15. Which of the following is an example of a natural monopoly? A) Public water. B) Running shoes. C) Grocery stores. D) Bananas. Show Answer Correct Answer: A) Public water. 16. Decision making can be slow and complicated because so many levels of management are involved A) Sole proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: C) Corporation. 17. Which market structure is characterized by a large number of small firms producing identical products? A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 18. Is the third market structure in question #2 incorporated or unincorporated? A) Unincorporated. B) Incorporated. Show Answer Correct Answer: B) Incorporated. 19. The thing businesses are aiming for. A) Stars. B) Costs. C) Revenue. D) Profit. Show Answer Correct Answer: D) Profit. 20. The real or imagined differences between competing products in the same industry. A) Oligopoly. B) Product differentiation. C) Marketing differential. D) Nonprice competition. Show Answer Correct Answer: B) Product differentiation. 21. A market in which there are a lot of firms that produce identical products. A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 22. Mia, Aria, and Oliver are running lemonade stands in a perfectly competitive market. What is the long-run equilibrium position of their stands? A) Where their Marginal Cost (MC) equals Marginal Revenue (MR) equals Average Cost (AC) equals Average Revenue (AR). B) Where their Marginal Cost (MC) equals Marginal Revenue (MR) and Marginal Cost is rising. C) Where their Average Revenue (AR) equals Total Revenue (TR) and Quantity (Q) equals Price (P) times Quantity (Q). D) Where their Quantity (Q) equals Price (P) times Quantity (Q) and Quantity (Q) equals Price (P). Show Answer Correct Answer: A) Where their Marginal Cost (MC) equals Marginal Revenue (MR) equals Average Cost (AC) equals Average Revenue (AR). 23. What market structure if price is the key for competing with other firms? A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect competition. 24. In a sole proprietorship, liability is A) There is no liability. B) Unlimited. C) General. D) Limited. Show Answer Correct Answer: B) Unlimited. 25. The federal law that first outlawed price discrimination was the A) Clayton Antitrust Act. B) Robinson-Patman Act. C) Sherman Antitrust Act. D) Federal Trade Commission Act. Show Answer Correct Answer: A) Clayton Antitrust Act. 26. Markets where many businesses sell the same products A) Monopolistic competition. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect competition. 27. The government's job in a free market economy is to A) Tell people and business what to do. B) Control who buys what. C) Control who sells what. D) Make sure all businesses are run fairly. Show Answer Correct Answer: D) Make sure all businesses are run fairly. 28. Identify type of monopoly:Public utilities A) Government Monopoly. B) Geographical Monopoly. C) Technological Monopoly. D) Natural Monopoly. Show Answer Correct Answer: D) Natural Monopoly. 29. Business model in which profits are taxed when they are earned and again when they are paid out to owners. A) Sole proprietorship. B) Partnership. C) Corproation. D) None of above. Show Answer Correct Answer: C) Corproation. 30. Few sellers and many buyers is characteristic of A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) None of above. Show Answer Correct Answer: C) Oligopoly. ← 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