This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Makari and Jenna are discussing the benefits of a sole proprietorship. Which might you hear them say? A) Unlimited liability. B) Long lasting life. C) Dividends. D) Keeping all the profits. Show Answer Correct Answer: D) Keeping all the profits. 2. Which of the following is an advantage of a sole proprietorship? A) Easy to discontinue. B) Unlimited liability. C) Limited access to resources. D) Lack of permanence. Show Answer Correct Answer: A) Easy to discontinue. 3. Not-for-Profit Corporations have to pay taxes. A) True. B) False. Show Answer Correct Answer: B) False. 4. Only one seller sells a product for which there are no close substitutes A) Monopoly. B) Perfect competition. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: A) Monopoly. 5. Which of the following basically sets up mini monopolies? A) Price fixing. B) Market allocation. C) Predatory pricing. D) Competitive pricing. Show Answer Correct Answer: B) Market allocation. 6. On which continent is the Sahara desert? A) Africa. B) Europe. C) America. D) Asia. Show Answer Correct Answer: A) Africa. 7. Imagine David, Nora, and Ava are playing a game of 'Market Masters'. In this game, they each own a business in a market structure known as 'monopolistic competition'. Can you tell what this means? A) It means David, Nora, and Ava are the only firms selling a unique product in the market. B) It means David, Nora, and Ava are among many firms selling differentiated products in the market. C) It means David, Nora, and Ava are among a few firms selling identical products in the market. D) It means there is no competition in the market where David, Nora, and Ava are doing business. Show Answer Correct Answer: B) It means David, Nora, and Ava are among many firms selling differentiated products in the market. 8. This can result if the government limits how much of an item you can get so everyone gets a little. A) Origination. B) Supply. C) Rationing. D) Los Angeles Lakers. Show Answer Correct Answer: C) Rationing. 9. Which of the following is true of a monopolistically competitive market? A) There are only a few large firms in the market and all produce identical products. B) There is one large firm in the market and it sells a product with no close substitutes. C) There are a huge number of firms selling identical products at the same price. D) There are many firms but each sells a product that is slightly different than its competitors' products. E) Firms are price takers and spend very little, if at all, on advertising. Show Answer Correct Answer: D) There are many firms but each sells a product that is slightly different than its competitors' products. 10. A market structure in which only a few sellers offer a similar product A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: A) Oligopoly. 11. Cooperation between two or more parties to limit competition. The parties may agree to divide a market, set prices, etc. A) Anti-trust. B) Oligopoly. C) Collusion. D) Monopoly. Show Answer Correct Answer: C) Collusion. 12. Government document granting an inventor the right to produce, use, or sell an invention exclusively for a limited period of time. A) Zoning. B) Anti-Trust. C) Patent. D) Collusion. Show Answer Correct Answer: C) Patent. 13. The barriers to entry in a monopoly are very low/easy entry A) False. B) True. Show Answer Correct Answer: A) False. 14. ..... is achieved when quantity demanded and quantity supplied are equal. A) Subsidy. B) Shortage. C) Equilibrium. D) Surplus. Show Answer Correct Answer: C) Equilibrium. 15. Which of the following markets is an example of an oligopoly? A) Book stores. B) Airline industry. C) Electronics. D) Farmers. Show Answer Correct Answer: B) Airline industry. 16. The profit-maximizing rule is that a firm will maximize profits:MC = MR A) False. B) True. Show Answer Correct Answer: B) True. 17. What is a monopoly? A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service in a specific market. B) A monopoly is a type of market structure where multiple companies compete for control over a particular product or service. C) A monopoly is a government program that provides financial assistance to low-income individuals. D) A monopoly is a type of board game where players buy and trade properties to try to bankrupt each other. Show Answer Correct Answer: A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service in a specific market. 18. Market structure where it is very difficult or impossible to enter because the money required is too large or because of laws that protect this product. A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 19. Which of the following would cause the demand curve to shift to the right? A) Price of a substitute good decreases. B) The average annual income increases. C) Suppliers expect higher prices in the future. D) A popular toys loses appeal. Show Answer Correct Answer: B) The average annual income increases. 20. An example of imperfect competition is when A) A book seller freely exits the market. B) A farmer sells eggs, fruits, and vegetables. C) Buyers receive enough information to make educated buying choices. D) Ice cream sellers join together to influence the price of ice cream sundaes. Show Answer Correct Answer: D) Ice cream sellers join together to influence the price of ice cream sundaes. 21. Agreement by a formal organization of producers to coordinate prices and production A) Cartel. B) Collusion. Show Answer Correct Answer: A) Cartel. 22. Which of the following is the BEST explanation for government regulation of the public utilities market? A) The isolated location makes it impossible for any other providers of utilities to compete. B) It is most efficient to allow only one supplier of electricity or water because of economies of scale. C) Providing utilities is not attractive to private companies because of limited opportunities to make a profit. D) The government wishes to reward the technological innovation of the utilities providers with limited competition. Show Answer Correct Answer: B) It is most efficient to allow only one supplier of electricity or water because of economies of scale. 23. In monopoly, the firm is the industry A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 24. What are barriers to entry? A) Factors that make it difficult for a new firm to enter a market. B) An illegal agreement among firms to divide the market, set prices, or limit production. C) A market for a good or service where there is only one supplier. D) A market in which there are many buyers and many sellers of an identical product. Show Answer Correct Answer: A) Factors that make it difficult for a new firm to enter a market. 25. Highest barriers to entry A) Oligopoly. B) Monopoly. Show Answer Correct Answer: B) Monopoly. 26. SSEMI3 What is the greatest advantage of a sole proprietorship? A) All profit go to the single owner. B) Easy to start. C) Makes all decisions. D) None of the above. Show Answer Correct Answer: A) All profit go to the single owner. 27. .... exists where there is only one firm in the market. A) Pure monopoly. B) Natural monopoly. C) Monopoly. D) Monopsons. Show Answer Correct Answer: C) Monopoly. 28. The break-even point (BEP) is obtained when TR>TC A) True. B) False. Show Answer Correct Answer: B) False. 29. Follows these conditions:many sellers; low barriers to enter market; slight control over price; differentiated products A) Monopolistic competition. B) Oligopoly. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: A) Monopolistic competition. 30. Cereal producers are a good example of which type of market structure? A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 2Market 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