This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 34 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The market for corn in Iowa would be considered ..... A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 2. Why do firms use marketing? A) Convince customers that their products are worth the price. B) Influence a consumer's buying decision. C) Persuade buyers that their products is superior than others. D) All of these. Show Answer Correct Answer: D) All of these. 3. ..... studies the national economy and global economy. In this area, we look at unemployment rates, taxes, and inflation and how those impact the economy as a whole. A) Communism. B) Macroeconomics. C) Microeconomics. D) Socialism. Show Answer Correct Answer: B) Macroeconomics. 4. What is the term used to describe a situation where common goods are misused and exploited to further business interests? A) Tragedy of the Commons. B) Poaching. C) Fracking. D) Nash equilibrium. Show Answer Correct Answer: A) Tragedy of the Commons. 5. What is the difference between a monopoly and a perfect competition? A) Monopoly is a market structure with no sellers, while perfect competition has many sellers. B) Monopoly is a market structure with many sellers, while perfect competition has one seller. C) Monopoly is a market structure with one seller, while perfect competition has no sellers. D) Monopoly is a market structure with one seller, while perfect competition has many sellers. tagsSSEMI3. Show Answer Correct Answer: D) Monopoly is a market structure with one seller, while perfect competition has many sellers. tagsSSEMI3. 6. Jane and Jill run a photography business as a partnership. They are trying to decide if they wish to form a corporation. If they decide to incorporate, what will be a new disadvantage they will face? A) Sharing of profits. B) Unlimited liability. C) Ease of startup. D) Double taxation. Show Answer Correct Answer: D) Double taxation. 7. What are the features of monopolistic competition? A) Homogeneous products, no control over price, difficult entry and exit, price competition. B) Differentiated products, no control over price, easy entry and exit, price competition. C) Homogeneous products, some control over price, easy entry and exit, non-price competition. D) Differentiated products, some control over price, easy entry and exit, non-price competition. Show Answer Correct Answer: D) Differentiated products, some control over price, easy entry and exit, non-price competition. 8. ..... is when there are numerous buyers and sellers and no one has control over the price of the product. A) Oligopoly. B) Monopoly. C) Perfect Competition. D) Collusion. Show Answer Correct Answer: C) Perfect Competition. 9. This market has some 25-75 firms selling slightly differentiated products, some price control, & low barriers to entry A) Oligopoly. B) Monopoly. C) Monopolistic Competition. D) None of above. Show Answer Correct Answer: C) Monopolistic Competition. 10. This is an illegal grouping of companies that discourages competition. A) Microsoft. B) Ween. C) Trust. D) Merger. Show Answer Correct Answer: C) Trust. 11. The selllers in which market are price makers? A) Oligopoly. B) Pure/Perfect Competition. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 12. A document which included the name, objectives, powers and registered address of a corporation is called ..... A) By-laws of corporation. B) Articles of Parnership. C) Constitution of Corportation. D) Articies of Incorporation. Show Answer Correct Answer: D) Articies of Incorporation. 13. What is a demerit good? A) A good or service that can bring about a positive or negative externality. B) A good or service that has a negative impact on the user, and a third party. C) A good or service that is prohibited or regulated by the government. D) A good or service that as a negative impact on the economy. Show Answer Correct Answer: B) A good or service that has a negative impact on the user, and a third party. 14. Which of the following is true regarding legal monopolies? A) They were created to stop innovation. B) They form due to natural barriers of entry. C) Government allows barriers to entry limit competition. D) None of above. Show Answer Correct Answer: C) Government allows barriers to entry limit competition. 15. A common disadvantage of a sole proprietorship is A) The limited life of the business. B) Double taxation of earnings. C) That the owner must share profits with others. D) Difficulty starting the business. Show Answer Correct Answer: A) The limited life of the business. 16. A game theorist's advice would be A) Trust your gut feelings. B) Collaborating to get what you want. C) Competing to get what you want. D) The best strategy does not exist. Show Answer Correct Answer: B) Collaborating to get what you want. 17. What is a key feature of monopolistic competition? A) Identical products. B) Differentiated products. C) High barriers to entry. D) Government regulation. Show Answer Correct Answer: B) Differentiated products. 18. In the circular flow model, which of the following owns the factors of production? A) Government. B) Only households. C) Only businesses. D) Both businesses and households. Show Answer Correct Answer: B) Only households. 19. The product price of a firm in a perfectly competitive industry is A) Never more than $ 100 each. B) Always dependent on government pricing laws. C) Always whatever every other firm's price is. D) Never really a factor in a consumer's buying decision. Show Answer Correct Answer: C) Always whatever every other firm's price is. 20. Which of the following is a condition of a perfect/pure competition? A) There are few sellers who are perfect. B) The products have to be very high quality. C) There are perfect rules that are enforced by the government. D) Products must be exactly the same. Show Answer Correct Answer: D) Products must be exactly the same. 21. Under perfect competition what sets the equilibrium price in the market? A) Nonprice competition. B) Supply and demand. C) The government. D) A monopoly. Show Answer Correct Answer: B) Supply and demand. 22. In return for a fee to a franchiser, a business owner receives the right A) To form a partnership with the franchiser. B) To sell the franchiser's goods and services. C) To run the business in the way he or she wishes. D) To sell the franchiser's stocks and bonds. Show Answer Correct Answer: B) To sell the franchiser's goods and services. 23. Which of the following is most likely an example of a fixed cost in making pizzas? A) Employee wages. B) Pizza dough. C) Pepperoni. D) Manager's salary. Show Answer Correct Answer: D) Manager's salary. 24. Grace, Zoe, and Benjamin are starting their own businesses. Grace is starting a monopoly, Zoe is starting an oligopoly, and Benjamin is starting a business with differentiated products. Which market structure is Benjamin's business characterized by? A) Oligopoly. B) Pure Competition. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: C) Monopolistic Competition. 25. SSEMI3 Which business organization has the disadvantage of unlimited liability for a single individual? A) Oligopoly. B) Partnership. C) Corporation. D) Sole Proprietorship. Show Answer Correct Answer: D) Sole Proprietorship. 26. If Google and McDonalds were to merge together, what type of merger would this be? A) Vertical. B) Horizonal. Show Answer Correct Answer: A) Vertical. 27. Most are illegal due to the Clayton and Sherman Antitrust acts A) Monopolistic comeptition. B) Perfect Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 28. In monopolistic competition if firms are making abnormal profit other firms will enter and: A) The marginal cost of the firm will shift outwards. B) The demand curve for the firm will shift inwards. C) The average cost of the firm will shift downwards. D) The average variable cost of the firm will increase. Show Answer Correct Answer: B) The demand curve for the firm will shift inwards. 29. Which business organization type has double taxation? A) Sole Proprietorship. B) Partnership. C) Non-profit. D) Corporation. Show Answer Correct Answer: D) Corporation. 30. In which economic system do both businesses and the government answer the three economic questions? A) Command Economy. B) Market Economy. C) Mixed Economy. D) Traditional Economy. Show Answer Correct Answer: C) Mixed Economy. ← 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