This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 35 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An agreement among members of an oligopoly to set prices and production levels is called A) Collusion. B) Price leadership. C) Competition. D) Imperfect monopoly. Show Answer Correct Answer: A) Collusion. 2. What is meant by Barrier to entry? A) New firms are welcome into the market. B) It is easy to get into the market. C) Any factor that makes it difficult for a new firm to enter a market. D) None of above. Show Answer Correct Answer: C) Any factor that makes it difficult for a new firm to enter a market. 3. When trying to start a business and enter a certain product market, there are fees and licenses to apply for and equipment to purchase. These are all ..... A) Consumer products. B) Factors of production. C) Barriers to entry. D) Supply & demand. Show Answer Correct Answer: C) Barriers to entry. 4. Economists believe that the downside of a minimum wage is A) Unemployment. B) Not enough workers. C) Wages will be too low. D) A shortage. Show Answer Correct Answer: A) Unemployment. 5. What is the relationship between price and quantity demanded in a monopolistic competition market? A) Random. B) No relationship. C) Direct or positive. D) Inverse or negative. Show Answer Correct Answer: D) Inverse or negative. 6. The high cost of starting a business could be an example of ..... A) Variety of goods. B) Control over prices. C) Advertising. D) Barriers to entry. Show Answer Correct Answer: D) Barriers to entry. 7. In which market structure do firms have some control over the price of their products due to product differentiation? A) Monopolistic Competition. B) Perfect Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Monopolistic Competition. 8. Polaroid has a patent on instant cameral, this patent means that A) Other companies can make instant cameras but must use a different name. B) Other companies can make cameras but not under the name polaroid. C) No other company can make cameras. D) No other company can make instant cameras. Show Answer Correct Answer: D) No other company can make instant cameras. 9. There are very high fixed costs involved in producing whatnots and over time one firm has come to dominate the market. There in almost no variety in the quality or appearance of the whatnots, but consumers continue to purchase them because they are vital to a life of comfort and happiness. Thankfully the government has stepped in to ensure that the price of whatnots is low and that no other firm can disrupt the production.How would you categorize the market for whatnots? A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: C) Monopoly. 10. In monopolistic competition, each firm supply a small part of the market. This occurs because A) Firms produce differentiated goods. B) There are barriers to entry. C) There are no barriers to entry. D) There are a large number of firms. Show Answer Correct Answer: D) There are a large number of firms. 11. Formal organization of sellers that agree to act together to set prices and limit output A) Price maker. B) Cartel. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Cartel. 12. Who is the demander is the labor market? A) Consumers. B) Workers. C) Companies. D) None of above. Show Answer Correct Answer: C) Companies. 13. The post office or fire department is an example of a ..... monopoly. A) Natural. B) Geographic. C) Technological. D) Government. Show Answer Correct Answer: D) Government. 14. Market where a few large sellers control production of a good or service. A) Oligopoly. B) Monopolistic Competition. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: A) Oligopoly. 15. Loganville has 3 main grocery stores, this is an example of which market? A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly. 16. Which market structure has the MOST competition? A) Monopolistic competition. B) Perfect competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Perfect competition. 17. Why are cartels nonbinding in the U.S.A.? A) They're illegal. B) They're too competitive. C) They're dangerous. D) They're not used. Show Answer Correct Answer: A) They're illegal. 18. Which of the following is NOT a feature of monopolistic competition? A) Identical products. B) Numerous buyers. C) Numerous sellers. D) Product differentiation. Show Answer Correct Answer: A) Identical products. 19. How does a monopoly affect consumer choice and competition? A) Restricts consumer choice and reduces competition. B) Increases consumer choice and encourages competition. C) No effect on consumer choice and competition. D) Restricts consumer choice and promotes competition. tagsSSEMI3. Show Answer Correct Answer: A) Restricts consumer choice and reduces competition. 20. A market failure occurs when A) A particular industry fails to make an adequate profit in a given year. B) A single company does not supply more than 90 percent of the total output for a good or service. C) Goods and services are not allocated in the most efficient way. D) The economy experiences a prolonged downturn and unemployment is extremely high. Show Answer Correct Answer: C) Goods and services are not allocated in the most efficient way. 21. Trinidad and Tobago Cement Limited controls about 80% of the cement industry and used to be the ONLY provider of cement. This is an example of A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) A monopoly. Show Answer Correct Answer: D) A monopoly. 22. Ordering market structures according to the ease of entry for new firms from easy entry to more difficult entry, we have A) Perfect competition, monopolistic competition, oligopoly, monopoly. B) Monopoly, oligopoly, monopolistic competition, perfect competition. C) Perfect competition, oligopoly, monopolistic competition, monopoly. D) Perfect competition, oligopoly, monopoly, monopolistic competition. E) Perfect competition, oligopoly, monopolistic competition, natural monopoly. Show Answer Correct Answer: A) Perfect competition, monopolistic competition, oligopoly, monopoly. 23. Which market structure can differentiate its products in order to slightly change its prices? A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 24. If ABM firm sells its differentiated products in a market, with many sellers and buyers, the structure is a/an A) Monopolistic competition. B) Perfect competitor. C) Oligopolist. D) Monopolist. Show Answer Correct Answer: A) Monopolistic competition. 25. What is wage discrimination A) Setting a wage that employers can't go below. B) Unemployment. C) Paying someone differently based on their race or gender. D) When unions negotiate for higher wages. Show Answer Correct Answer: C) Paying someone differently based on their race or gender. 26. Which is a difference in how economic decisions are made in a mixed economy and a market economy? A) Consumers make all economic decisions in a mixed economy, while government makes all economic decisions in a marketeconomy. B) Government makes all economic decisions in a mixed economy, while consumers make all economic decisions in a marketeconomy. C) Government and consumers make economic decisions in a mixed economy, while consumers make economic decisions ina market economy. D) Consumers make economic decisions in a mixed economy, while consumers and government make economic decisions ina market economy. Show Answer Correct Answer: C) Government and consumers make economic decisions in a mixed economy, while consumers make economic decisions ina market economy. 27. Jackson, Hannah, and James are discussing the local farmers market. They agree that the primary characteristic of this market, which is a purely competitive market, is what? A) Efficiency. B) Differentiated products. C) Control over price. D) Barriers to entry. Show Answer Correct Answer: A) Efficiency. 28. What is Price Discrimination? A) Grouping customers together based on their wants. B) Division of customers into groups based on how much they will pay for a good. C) Charging everyone the same price for goods. D) None of above. Show Answer Correct Answer: B) Division of customers into groups based on how much they will pay for a good. 29. What is market power? A) The ability of a firm or a group of firms to minimize costs in a market. B) The ability of a firm or a group of firms to collaborate with competitors in a market. C) The ability of a firm or a group of firms to attract customers in a market. D) The ability of a firm or a group of firms to influence the price and output in a market. Show Answer Correct Answer: D) The ability of a firm or a group of firms to influence the price and output in a market. 30. What is the driving force in perfect competition A) Products. B) Collusion. C) Differentiation. D) Prices. Show Answer Correct Answer: D) Prices. ← 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