This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following industries is NOT an example of an oligopoly? A) Air travel. B) Bicycle repair. C) Breakfast cereals. D) Cola. Show Answer Correct Answer: B) Bicycle repair. 2. The difference between a market and an industry is that A) Industries consist of firms producing the same good while markets consist of industries producing substitute goods. B) Firms make up a market while markets make up an industry. C) Industries consist of markets producing the same good while markets consist of firms producing substitute goods. D) Industries are substitutes for markets, but markets are not substitutes for industry. E) Industries are collections of markets while markets are collections of firms. Show Answer Correct Answer: A) Industries consist of firms producing the same good while markets consist of industries producing substitute goods. 3. What term is defined as "the nature and degree of competition among firms in the same industry? A) Let it happen. B) Monopolistic competition. C) Market structure. D) Market failure. Show Answer Correct Answer: C) Market structure. 4. An action by one seller in this market will always affect all the others. A) Pure Monopoly. B) Monopolistic Competition. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: C) Oligopoly. 5. Sophia, Jackson, and Lily are playing a game about market structures. They need to identify the market structure with only one seller. Can you help them? A) Monopsons. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 6. Barriers to entry are A) Market structures in which producers have some control over the price of their products. B) Obstacles that can restrict access to a market and limit competition. C) Producers who must accept the market price for their product. D) The costs of shopping around for the best product at the best price. Show Answer Correct Answer: B) Obstacles that can restrict access to a market and limit competition. 7. Lily, Grace, and Emma are discussing their favorite topic:economics! They're trying to remember the term that refers to the ability of a firm to influence market conditions. Can you help them out? A) Market dominance. B) Market power. C) Market control. D) Market influence. Show Answer Correct Answer: B) Market power. 8. Which market structure is characterized by a large number of firms, homogeneous products, and free entry and exit? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 9. What market form are sellers free to enter into, conduct, or get out of business? A) Monopoly. B) Monopolistic Competition. C) Oligopoly. D) Perfect (Pure) Competition. Show Answer Correct Answer: D) Perfect (Pure) Competition. 10. The term liability means which of the following? A) Responsibility. B) Probability. C) Propensity. D) Capability. Show Answer Correct Answer: A) Responsibility. 11. Scarlett, Evelyn, and Elijah are running a lemonade stand in a perfectly competitive market. What is the main assumption of their market situation? A) The lemonade they produce is unique and cannot be replicated by others. B) They can prevent new lemonade stands from popping up in their neighborhood. C) There are a large number of lemonade buyers and sellers in their neighborhood. D) They have full knowledge of profits and prices of all other lemonade stands. Show Answer Correct Answer: C) There are a large number of lemonade buyers and sellers in their neighborhood. 12. Josie owns stock in Crosby Enterprises. What is a disadvantage Josie faces? A) Unlimited liability. B) Bothered by many company decisions. C) Double taxation. D) Losing her multi-million dollar estate. Show Answer Correct Answer: C) Double taxation. 13. Which type of market structure has the lowest level of market concentration? A) Oligopoly. B) Perfect competition. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Perfect competition. 14. If not regulated by the government, which market structure has total price-setting power? A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 15. A market with many buyers and sellers, identical products, and free entry and exit A) Oligopoly. B) Perfect comp. C) Monopoly. D) Monopolistic comp. Show Answer Correct Answer: B) Perfect comp. 16. To find profit maximization, you must find the quantity where marginal costs equal ..... A) Marginal revenue. B) Variable costs. C) Market structure. D) Average fixed costs. Show Answer Correct Answer: A) Marginal revenue. 17. Who is a consumer? A) Maker of a commodity. B) User of a commodity. C) Customer of a commodity. D) Buyer of a commodity. Show Answer Correct Answer: B) User of a commodity. 18. Globalization leads to all of the following except ..... A) Less manufacturing jobs. B) Lower wages for low skilled workers. C) Lower wages for high skilled workers. D) A greater need to know about other cultures and languages. Show Answer Correct Answer: C) Lower wages for high skilled workers. 19. If ABM firm sells its product in a market, with many sellers and buyers ofhomogeneous product, and unlimited resource mobility, the structures is a/an ..... ? A) Perfect competitor. B) Oligopolist. C) Monopolistic competitor. D) Monopolist. Show Answer Correct Answer: A) Perfect competitor. 20. Which of the following is a disadvantage of a Sole Proprietorship? A) Difficult to raise money. B) Double Taxation. C) Less flexible. D) Difficult to start. Show Answer Correct Answer: A) Difficult to raise money. 21. What is it when you make a product unlike any other product? A) Differentiation. B) Patent. C) Commodity. D) Franchise. Show Answer Correct Answer: A) Differentiation. 22. Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a A) Corporation. B) Sole proprietorship. C) Partnership. D) Monopoly. Show Answer Correct Answer: C) Partnership. 23. The airline industry is a good example A) Oligopoly. B) Pure Monopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Oligopoly. 24. It is the most ideal market structure. A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 25. A way to attract customers through style, service, or location, but not a lower price A) Price competition. B) Non-price competition. C) Competition. D) Advertising. Show Answer Correct Answer: B) Non-price competition. 26. A single seller in a market A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: A) Monopoly. 27. Market structure with one seller providing a unique product with no close subsitutes A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Monopoly. 28. A mine worker is an example of which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Labor. 29. What market structure is characterized by a few large firms dominating the market and interdependence among firms? A) Monopsons. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: C) Oligopoly. 30. One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business. A) False. B) True. Show Answer Correct Answer: A) False. ← 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