This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which allows increasing returns to occur with production? A) Worker specialization. B) Increasing costs. C) Underutilization. D) Fixed resources. Show Answer Correct Answer: A) Worker specialization. 2. The unemployment rate has decreased.9% in the last year, meaning that more individuals are either finding work or have given up looking for jobs. Is this a microeconomic issue or macroeconomic? A) Macroeconomic. B) Microeconomic. Show Answer Correct Answer: A) Macroeconomic. 3. Public utilities are an example of? A) Monopolistic power. B) A competitive market. C) Natural Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Natural Monopoly. 4. Which statement below is NOT true about monopolies A) All monopolies are harmful. B) Businesses in monopolies are 'Price Makers'. C) Only one seller sells a product with no close substitutes. D) The least competitive market structure is a monopoly. Show Answer Correct Answer: A) All monopolies are harmful. 5. Which of the following can be done by the government to discourage the use of demerit goods? A) Set a minimum age for the consumption of these goods. B) Inform the people about the negative effects of consuming these good. C) Impose a total ban on the production & consumption of these goods. D) Impose a higher tax on these goods. Show Answer Correct Answer: C) Impose a total ban on the production & consumption of these goods. 6. Collusion and price fixing can become a problem in this type of market structure A) Monopoly. B) Oligopoly. C) Perfect Compeition. D) Monopolistic Competition. Show Answer Correct Answer: B) Oligopoly. 7. Which market structure involves selling "similar" products and there are SEVERAL firms involved. A) Perfect Competition. B) Monopoly. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: D) Monopolistic Competition. 8. What is a characteristic of a perfectly competitive market? A) Entry into the industry is difficult. B) Products are identical. C) Producers have market power. D) Products are unique. Show Answer Correct Answer: B) Products are identical. 9. If Amazon pays workers $ 15/hour, higher than competitors, how would they feel about increasing minimum wage to $ 15/hr? A) Oppose the new regulation. B) Favor the new regulation. Show Answer Correct Answer: B) Favor the new regulation. 10. Which planet is the smallest? A) Saturn. B) Mars. C) Mercury. D) Venus. Show Answer Correct Answer: C) Mercury. 11. SSEMI3 Which business organization is a firm legally owned by two or more people? A) Partnership. B) Oligopoly. C) Sole Proprietorship. D) Corporation. Show Answer Correct Answer: A) Partnership. 12. What do oligopolies and monopolistically competitive markets have in common? A) Both have low barriers to entry. B) Many sellers. C) Both have some control over the price. D) All businesses are corporations. Show Answer Correct Answer: C) Both have some control over the price. 13. It has four categories:natural, geographic, technological, government A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Pure Monopoly. Show Answer Correct Answer: D) Pure Monopoly. 14. Sarah Grace decides to open a boutique. She is surprised at how easy she was able to get started. In a few days, she is open for business and selling a lot of her inventory, even though there are five other successful boutiques in town. Based on this scenario, which of the following is probably NOT true? A) Since she faced few barriers to entry, the market is probably not perfectly competitive. B) Since there are other sellers who are able to make a profit, it's probably not a monopoly. C) Since all the stores are not selling the exact same products, it is probably not pure competition. D) Since the boutique has competition, it probably has good customer service. Show Answer Correct Answer: A) Since she faced few barriers to entry, the market is probably not perfectly competitive. 15. In summer 2012 New Braunfels experienced large crowds of tourists on the Guadalupe and Comal Rivers. Those crowds generated large amounts of trash. What term describes this condition? A) Positive externality. B) Spillover benefit. C) Negativen Externality. D) Monopoly. Show Answer Correct Answer: C) Negativen Externality. 16. Fixed Costs are only fixed in the A) Long run. B) Short run. C) Period where there is neither a profit or a loss. D) None of the above. Show Answer Correct Answer: B) Short run. 17. Draw a labor market diagram shift. Google decides it wants expands its business and hire more workers. What happens to wages and quantity? A) Both Increase. B) Wage Increases and Quantity Decreases. C) Both Decrease. D) Wage Decreases and Quantity Increases. Show Answer Correct Answer: A) Both Increase. 18. Is education a good? A) Yes, it is a tangible good. B) No, it is a product. C) Yes, it is an intangible good. D) No, it is a service. Show Answer Correct Answer: D) No, it is a service. 19. Businesses and inventors are able to apply for a ..... in order to protect themselves from competitors copying their technology A) Patent. B) Trademark. C) Copyright. D) Trust. Show Answer Correct Answer: A) Patent. 20. T or F Would Pepsi and Coke conspire together to make prices? A) False. B) True. Show Answer Correct Answer: B) True. 21. A monopolist is a A) Price maker. B) Price taker. C) Price adjuster. D) None of the above. Show Answer Correct Answer: A) Price maker. 22. What is the relationship between price and quantity supplied in a monopolistic competition market? A) Negative. B) No relationship. C) Positive. D) Inverse. Show Answer Correct Answer: C) Positive. 23. Which of the following is a price strategy, where groups get together to set prices even though they might be competitors? A) Collusion. B) Price discrimination. Show Answer Correct Answer: A) Collusion. 24. Government in the country determines how all 4 questions are answered and key industries, such as transportation and communication, are owned and operated by the government. A) Communism. B) Mixed-Economy. C) Socialism. D) Free Market. Show Answer Correct Answer: C) Socialism. 25. Most of the companies that you will buy products/services from will fall into these two categories. A) Monopoly/ Monopolistic competition. B) Perfect competition/ Oligopoly. C) Monopoly/ Oligopoly. D) Oligopoly/ Monopolistic competition. Show Answer Correct Answer: D) Oligopoly/ Monopolistic competition. 26. NPF-Menulog raises its payrate for drivers. What curve is impacted in the pizza shop market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: C) Supply Left. 27. What is an example of a substitute? A) Cell phone for boat. B) Computers for a shovel. C) Car for a truck. D) Rocks for a bike. Show Answer Correct Answer: C) Car for a truck. 28. What determines the price that a price taker firm charges in a perfectly competitive market? A) The efficiency of the firm's operations. B) The intersection of the Market Demand and Market Supply curves. C) The firm's desire for profit. D) The demand curve faced by the firm. Show Answer Correct Answer: B) The intersection of the Market Demand and Market Supply curves. 29. Which of the following is endless in nature? A) Goods. B) Economic ideas. C) Wants. D) Resources. Show Answer Correct Answer: C) Wants. 30. Advantages of a monopoly ..... A) Monopolies increase prices and decrease quantity over competitive markets. B) Deadweight losses indicate that monopolies are inefficient. C) Economies of scale can exist so that each unit is produced more efficiently (i.e., at alower per-unit cost) in larger firms. D) None of above. Show Answer Correct Answer: C) Economies of scale can exist so that each unit is produced more efficiently (i.e., at alower per-unit cost) in larger firms. ← 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