This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 21 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which item being sold would be considered monopolistic competition? A) Oranges. B) Psch. C) Electricity. D) Jeans. Show Answer Correct Answer: D) Jeans. 2. All of the following are characteristics of monopolistic competition except ..... A) There are many buyers and many sellers. B) The products sold are similar but differentiated. C) A market leader may emerge from among the many suppliers. D) There are many barriers to entry and exit. Show Answer Correct Answer: D) There are many barriers to entry and exit. 3. NPF-The gov't cuts tariffs on at-home espresso machines. What curve is impacted in the takeaway coffee market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: A) Demand Left. 4. The worldwide market structure for cars most resembles a: A) Oligopoly. B) Perfect competition. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 5. Any factor that makes it difficult for a new firm to enter a market such as high start-up costs or a high degree of technology needed. A) Barrier to Entry. B) Start-Up Costs. C) Price War. D) Collusion. Show Answer Correct Answer: A) Barrier to Entry. 6. If a monopolist is producing a level of output where MR exceeds MC, then it should A) Increase its output. B) Raise its price. C) Shift its marginal cost curve upward. D) Lower its output. Show Answer Correct Answer: A) Increase its output. 7. Choose the example that goes best with monopolistic competition. A) Soda pop. B) Gas (for your house). C) Fast food. D) Cars. Show Answer Correct Answer: C) Fast food. 8. An example of monopolistic competition is A) Dart trains. B) Fast food. C) The water company. D) Oncor. Show Answer Correct Answer: B) Fast food. 9. When there is lots of competition in a market because the barriers to entry are low and there are many substitutes that exist, this is called? A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: C) Perfect Competition. 10. Public disclosure supports competition by A) Providing buys and sellers with information. B) Revealing competitive trade secrets. C) Converting private businesses into government agencies. D) Concentrating information in the hands of the government. Show Answer Correct Answer: A) Providing buys and sellers with information. 11. A monopoly created by the administration. A) Market power. B) Government monopoly. C) Monopoly. D) Natural monopoly. Show Answer Correct Answer: B) Government monopoly. 12. Valuable product A) Salt. B) Commodity. C) Gold. D) Fiat. Show Answer Correct Answer: B) Commodity. 13. The fact that you can buy shares in AT&T and Target makes them A) Sole proprietorship. B) A corporation. C) A partnership. D) A cartel. Show Answer Correct Answer: B) A corporation. 14. The purpose of both deregulation and antitrust laws is to A) Promote inefficient commerce. B) Government control. C) Prevent monopolies. D) Promote competition. Show Answer Correct Answer: D) Promote competition. 15. If a firm enjoys economies of scale, A) Costs will rise as production goes up. B) It is in perfect competition. C) Its profits will increase as production increases. D) Its profits will decrease as production increases. Show Answer Correct Answer: C) Its profits will increase as production increases. 16. Which Market Structure has one seller and owns the market? A) Monopolistic Competition. B) Pure Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 17. A market that only features one seller of a product is A) Perfectly competative. B) An oligopoly. C) A monopoly. D) In monopolistic competition. Show Answer Correct Answer: C) A monopoly. 18. Which of these is NOT one of the conditions of PURE COMPETITION A) Easy market entry and exit. B) Many buyers and sellers. C) Informed sellers and buyers. D) Differentiated products. Show Answer Correct Answer: D) Differentiated products. 19. The American industry that comes closest to its agriculture before 1930 A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Pure Monopoly. Show Answer Correct Answer: A) Perfect Competition. 20. What type of market structure has no barriers to entry, and products are identical? A) Perfect Competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 21. What type of economic system does the United States use? A) Traditional Market. B) Free Enterprise. C) Command Market. D) Socialist Enterprise. Show Answer Correct Answer: B) Free Enterprise. 22. Can price control by the government reduce the exploitation of monopolists? A) No. B) Yes. Show Answer Correct Answer: B) Yes. 23. Oligopoly is characterized by A) Few firms.Impeded entry.Example-oil companies, car manufacturers. B) Many firms.Easy entry.Example-food industry. Show Answer Correct Answer: A) Few firms.Impeded entry.Example-oil companies, car manufacturers. 24. Which first electrical item did Thomas Edison invent? A) Lightbulb. B) Telephone. C) Toaster. D) Television. Show Answer Correct Answer: A) Lightbulb. 25. Why are monopolies bad? A) Control Pricing. B) Controls Who makes it. C) Both. D) Neither. Show Answer Correct Answer: A) Control Pricing. 26. The causes of market failure include: A) Increased competition, inadequate competition, and resource immobility. B) Inadequate competition, inadequate information, and externalities. C) Inadequate competition, inadequate information, and resource mobility. D) Increased competition, inadequate information, and externalities. Show Answer Correct Answer: B) Inadequate competition, inadequate information, and externalities. 27. What are the characteristics of perfect competition? A) Small number of buyers and sellers, homogeneous products, perfect information, restricted entry and exit, no control over prices. B) Large number of buyers and sellers, differentiated products, imperfect information, free entry and exit, control over prices. C) Large number of buyers and sellers, homogeneous products, perfect information, free entry and exit, no control over prices. D) Small number of buyers and sellers, differentiated products, imperfect information, restricted entry and exit, control over prices. Show Answer Correct Answer: C) Large number of buyers and sellers, homogeneous products, perfect information, free entry and exit, no control over prices. 28. Which market structure best describes the Tucson casino market? A) Geographic monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 29. Which of the following is the best definition of the word "marginal?" A) Complicated. B) Additional. C) Econometric. D) Abstract. Show Answer Correct Answer: B) Additional. 30. Which type of market structures has few producers(companies) such as 2 or 3 and they have complete control over the price? Hint:think of the soda market A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: A) 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