This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why is economics regarded as social science? A) It is developed by humans. B) It formulates theories for societies. C) It explains demand and supply. D) It studies human behaviour. Show Answer Correct Answer: D) It studies human behaviour. 2. One Seller, Unique product A) Perfect Competition. B) Monopoly. C) Monopolistic Compeition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 3. What is the market demand curve for a monopoly firm? A) Upward sloping. B) Downward sloping. C) Vertical. D) Horizontal. Show Answer Correct Answer: B) Downward sloping. 4. A single seller controls the supply of a good or service A) Monopolistic Competition. B) Pure Monopoly. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: B) Pure Monopoly. 5. Which of these market structures has the least control over price in the marketplace? A) Oligopoly. B) Perfect Competition. C) Monopoly. D) Monopolistic Competition. Show Answer Correct Answer: B) Perfect Competition. 6. Market structure characterized by a single producer in a market A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Purely Competitive. Show Answer Correct Answer: A) Monopoly. 7. Monetary policy differs from fiscal policy in that monetary policy is A) More sensitive to political considerations. B) Under the control of the Federal Reserve System. C) More time-consuming to implement. D) Related to tax increases and decreases. Show Answer Correct Answer: B) Under the control of the Federal Reserve System. 8. Which of the following is NOT true about a perfectly competitive market? A) Price maker. B) Many firms. C) Price taker. D) Identical product. Show Answer Correct Answer: A) Price maker. 9. Imagine Oliver, Noah, and Olivia are running lemonade stands in a neighborhood (a Perfectly Competitive Market). What happens when new kids start their own lemonade stands in the same neighborhood? A) All of the above. B) Oliver, Noah, and Olivia's customer base (demand) decreases. C) The price of lemonade in the neighborhood decreases. D) The total number of lemonade stands (market supply) in the neighborhood increases. Show Answer Correct Answer: A) All of the above. 10. What is the main feature of an oligopoly market? A) Few large firms dominating the market. B) No competition in the market. C) One firm dominating the market. D) Many small firms dominating the market. Show Answer Correct Answer: A) Few large firms dominating the market. 11. State where wildfires are ravaging communities. A) California. B) Pennsylvania. C) Virginia. D) Scotland. Show Answer Correct Answer: A) California. 12. Forms when barriers prevent firms from entering a market that has a single supplier A) Oligopoly. B) Government Monopoly. C) Natural Monopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 13. When a lower price is the main reason for customers to buy from one business over another A) Price war. B) Price competition. C) Nonprice competition. D) All of these answers. Show Answer Correct Answer: B) Price competition. 14. Example:minimum wage A) Price ceiling. B) Price floor. Show Answer Correct Answer: B) Price floor. 15. An advantage of better service and convenient store hours A) Price competition. B) Customer service. C) Nonprice competition. D) Pure competition. Show Answer Correct Answer: C) Nonprice competition. 16. Which type of monopoly is allowed to exist because they keep the average cost per customer low? A) Geographic Monopoly. B) Government Monopoly. C) Natural Monopoly. D) Technological Monopoly. Show Answer Correct Answer: C) Natural Monopoly. 17. The term used for costs that change with the number of output A) Variable Cost. B) Fixed Cost. C) Marginal Cost. D) Average Cost. Show Answer Correct Answer: A) Variable Cost. 18. Coke and Pepsi are part of what market structure? A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: B) Oligopoly. 19. Which of the following is most likely an example of a monopoly? A) A Starbucks across from Dunkin Donuts. B) A gas station in the country by itself. C) 3 fast food restaurants all on the same street. D) A Kroger 4 miles away from a Walmart. Show Answer Correct Answer: B) A gas station in the country by itself. 20. What is the market structure of Pepsi and Coke? A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 21. In a Perfect Competition, products are basically ..... A) Similar. B) Identical. C) Opposite. D) Differentiated. Show Answer Correct Answer: B) Identical. 22. Which of the following applies to both monopolistic competition and perfect competition? A) Productive inefficiency. B) Differentiated products. C) Long-run zero economic profits. D) Price setter. Show Answer Correct Answer: C) Long-run zero economic profits. 23. What IS an advantage of a sole proprietorship? A) Shares can be sold to raise capital (money). B) Decisions are responsibilities can be shared. C) It is hard to start up. D) The owner has independence. Show Answer Correct Answer: D) The owner has independence. 24. Which of the following is not a type of imperfect competition A) Monopoly. B) Oligopoly. C) Pure. D) Monopolistic. Show Answer Correct Answer: C) Pure. 25. AN EXAMPLE OF A GOVERNMENT MONOPOLY A) FIESTA TEXAS. B) DISNEYLAND. C) (USPS) UNITED STATES POSTAL SERVICE. D) BEN AND JERRY'S. Show Answer Correct Answer: C) (USPS) UNITED STATES POSTAL SERVICE. 26. The difference between a firm's total revenue and its total opportunity cost is the firm's A) Normal profit. B) Marginal revenue. C) Marginal profit. D) Economic profit. Show Answer Correct Answer: D) Economic profit. 27. What company has the lowest percentage of business in the U.S? A) Corporations. B) Sole proprietorship. C) Partnerships. D) Multinationals. Show Answer Correct Answer: C) Partnerships. 28. What are the conditions for perfect competition? A) Only a few buyers and sellers. B) 1. Many buyers and sellers2. Identical products3. Informed buyers and sellers4. Free market entry and exit. Show Answer Correct Answer: B) 1. Many buyers and sellers2. Identical products3. Informed buyers and sellers4. Free market entry and exit. 29. What are the names of the two ways in which the government influences the business cycle? A) Supply and Demand. B) Monetary Policy and Fiscal Policy. C) Surplus and Shortage. D) Expansion and Contraction. Show Answer Correct Answer: B) Monetary Policy and Fiscal Policy. 30. Why does the government place price ceilings on some "essential" goods? A) To prevent inflation during to reduce supply for these goods. B) To keep business people from making large profits. C) To keep the goods from becoming too expensive. D) To reduce demand for these goods. Show Answer Correct Answer: C) To keep the goods from becoming too expensive. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books