This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 33 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the 1950s in the United States, the car industry was dominated by GM, Ford and Chrysler. This is an example of: A) An oligopoly. B) Perfect Competition. C) A monopoly. D) Monopolistic Competition. Show Answer Correct Answer: A) An oligopoly. 2. The Supply Curve has moved right. Where is the new equilibrium price and quantity? A) Lower, higher. B) Higher, higher. C) Lower, lower. D) Higher, lower. Show Answer Correct Answer: A) Lower, higher. 3. The market structure for private aerospace travel would most resemble a: A) Oligopoly. B) Perfect Competition. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 4. The term for costs that cannot be avoided in the short run A) Variable Cost. B) Total Cost. C) Fixed Cost. D) Average Cost. Show Answer Correct Answer: C) Fixed Cost. 5. Which is a major advantage of the corporate form of business? A) The company has a limited life. B) Ownership is easily transferred from one party to another. C) The owners are guaranteed a profit. D) The owners have an unlimited liability. Show Answer Correct Answer: B) Ownership is easily transferred from one party to another. 6. Which of these companies are the most likely to participate in an oligopoly? A) Frozen yogurt store. B) Pharmaceutical company. C) An apple farmer. D) Power company. Show Answer Correct Answer: B) Pharmaceutical company. 7. Which of the following is NOT one of the conditions of competitive markets? A) Many actors (consumers and producers). B) Very different products. C) Widespread information available to consumers and producers. D) Low barriers to entry and exit of market. Show Answer Correct Answer: B) Very different products. 8. Market where a single seller dominates. A) Luciopoly. B) Monopoly. C) Open market. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 9. The intended effects of advertising are to increase the market share for a firm and to make the demand for the product more elastic A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 10. How easy is it for companies to collude? A) Somewhat easy. B) Very easy. C) It has never happened. D) Very difficult. Show Answer Correct Answer: D) Very difficult. 11. Government is concerned with all of the following practices of oligopolies EXCEPT A) Collusion. B) Price leadership. C) Cartels. D) Low barriers to entry. Show Answer Correct Answer: D) Low barriers to entry. 12. What is the mode of 3, 5, 2, 1, 9, 8, 25, 2, 6, 66, 90, 7, and 4? A) 90. B) 2. C) 25. D) 1. Show Answer Correct Answer: B) 2. 13. A set of rules or laws designed to control business behavior A) Price Fixing. B) Deregulation. C) Regulation. D) Cooperatives. Show Answer Correct Answer: C) Regulation. 14. Which is an example of a natural monopoly? A) A city water system. B) An intergovernmental revenue payment. C) A balanced budget amendment. D) All three of these. Show Answer Correct Answer: A) A city water system. 15. Other things being equal, if the price of a good falls, the consumer surplus A) Increases. B) Decreases. C) Is unchanged. D) May increase, decrease, or remain unchanged. Show Answer Correct Answer: A) Increases. 16. All 4 questions are answered by government plans; the goods and services produced are based on what the government says, not what the people want/need; workers have little choice in their career/job. A) Socialism. B) Communism. C) Entrepreneurship. D) Free Market. Show Answer Correct Answer: B) Communism. 17. How can businesses differentiate their products from other companies products in their market? A) Cool packaging. B) Physical Location. C) Image. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. A merger happens when one company A) Causes another company go bankrupt. B) Divides and forms several firms. C) Joins another company to form a single firm. D) None of above. Show Answer Correct Answer: C) Joins another company to form a single firm. 19. Which of the following is a source of monopoly power? A) Scarcity. B) Elasticity of demand. C) Barriers to entry. D) Low Profits. Show Answer Correct Answer: C) Barriers to entry. 20. How many conditions are there for perfect competition? A) 4. B) 10. C) 5. D) 8. Show Answer Correct Answer: C) 5. 21. An agreement between members of an oligopoly to set prices and production levels is called? A) Collusion. B) Scheming. C) Competition. D) Price leadership. Show Answer Correct Answer: A) Collusion. 22. Which type of a monopoly where a market situation where the costs of production are minimized by having a single firm produce the product? A) Technological Monopoly. B) Natural Monopoly. C) Geographical Monopoly. D) Government Monopoly. Show Answer Correct Answer: B) Natural Monopoly. 23. What is a market structure with a single firm and many buyers called? A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 24. How are sole proprietorships and partnerships alike? A) Owners have limited legal liability. B) The businesses are owned by one person. C) Owners have complete control of the business. D) Contracts are needed to start the businesses. Show Answer Correct Answer: C) Owners have complete control of the business. 25. What is commodity? A) Products that are very different. B) A product that is the same no matter who produces it, such as petroleum, notebook paper, or milk. Show Answer Correct Answer: B) A product that is the same no matter who produces it, such as petroleum, notebook paper, or milk. 26. Which of these statements describes how economies of scale affect the market for electrical power in a community? A) Because it would cost much more for two companies to offer power within a community, there is usually only one. B) Because putting up long-distance power lines is expensive, power plants are commonly built close to each community. C) Because large communities are cheaper to supply with power than small towns, small communities typically lack service. D) Because big power plants produce more power than small ones, a community near the plants risks serious air pollution. Show Answer Correct Answer: A) Because it would cost much more for two companies to offer power within a community, there is usually only one. 27. What are the barriers to entry in a monopoly market? A) High start-up costs, lack of economies of scale, absence of legal barriers, lack of control of essential resources, and weak brand loyalty. B) Low start-up costs, lack of economies of scale, absence of legal barriers, lack of control of essential resources, and weak brand loyalty. C) High start-up costs, economies of scale, legal barriers, control of essential resources, and strong brand loyalty. D) Low start-up costs, economies of scale, absence of legal barriers, lack of control of essential resources, and weak brand loyalty. Show Answer Correct Answer: C) High start-up costs, economies of scale, legal barriers, control of essential resources, and strong brand loyalty. 28. There is a large number of independent sellers. A) Oligopoly. B) Monopoly. C) Pure Competition. D) None of above. Show Answer Correct Answer: C) Pure Competition. 29. Which market structure has the lowest concentration of sellers? A) Perfect Competition. B) Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 30. Two or more individuals own and operate this type for business for their own profit A) Sole proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: B) Partnership. ← 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