This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 37 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 37 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why is competition among restaurants in a big city an example of monopolistic competition? A) Starting a restaurant is expensive. B) Restaurants often go out of business. C) All restaurants serve food, and each restaurant is distinctive. D) All restaurants serve people, and one restaurant serves the most people. Show Answer Correct Answer: C) All restaurants serve food, and each restaurant is distinctive. 2. Complete control over prices, higher than prices should be, lower (shortage) and less efficient production, no competition, large profit! A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 3. Monopoly has two key features, which are A) Barriers to entry and no close substitutes. B) Franchises and barriers to entry. C) Barriers to entry and close substitutes. D) Close substitutes and no barriers to entry. Show Answer Correct Answer: A) Barriers to entry and no close substitutes. 4. A market is classified as an oligopoly when A) Many firms produce the same product. B) Only one firm sells a product with no close substitutes. C) No matter how many firms are in the market, a barrier blocks entry by other firms. D) A few firms compete. E) Many firms produce a slightly differentiated product. Show Answer Correct Answer: D) A few firms compete. 5. Use the following headlines to answer the question below. Owned by shareholdersAccess to large amounts of funds for expansionDisadvantages:Double taxation The above headlines are all examples of A) Partnership. B) Corporation. C) Monopoly. D) Sole proprietorship. Show Answer Correct Answer: B) Corporation. 6. What is a barrier to entry? A) High Start up costs. B) Strong existing brand loyalty. C) High customer switching costs. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. What competition has distinct features and firms work with interdependent behavior? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: C) Oligopoly. 8. True or False:The government can regulate businesses. A) False. B) True. Show Answer Correct Answer: B) True. 9. Barry and two associates have been operating a business that is not going well. Barry is stressed out because the company is over $ 200, 000 in debt and he knows that if it goes out of business, he and his two associates will have to pay it out of their own pockets. It sounds like Barry and his two associates have a A) Partnership. B) Stock. C) Sole proprietorship. D) Corporation. Show Answer Correct Answer: A) Partnership. 10. Which of the following statements correctly identifies a difference between monopoly and monopolistic competition? A) The monopoly firm charges a markup, but a monopolistically competitive firm does not. B) There are barriers to entry in monopoly, but not in monopolistic competition. C) There are many buyers in monopoly, but there are only a few buyers in monopolistic competition. D) There is only one firm in monopoly, but there are a few firms in monopolistic competition. E) The demand curve is downward sloping in monopoly, but not in monopolistic competition. Show Answer Correct Answer: B) There are barriers to entry in monopoly, but not in monopolistic competition. 11. Type of merger in which a business seeks to control the manufacturing process A) Vertical. B) Horizontal. C) Conglomeration. D) None of above. Show Answer Correct Answer: A) Vertical. 12. MARKET STRUCTURE IN WHICH A LARGE NUMBER OF FIRMS PRODUCE THE SAME PRODUCT A) PERFECT COMPETITION. B) OLIGOPOLY. C) MONOPOLY. D) MONOPOLISTIC COMPETITION. Show Answer Correct Answer: A) PERFECT COMPETITION. 13. The price of steel increases, and it now costs more to purchase a car. This is because auto manufacturers have had to raise their prices to make up for the increased cost of production. Is this macroeconomic or microeconomic? A) Microeconomic. B) Macroeconomic. Show Answer Correct Answer: A) Microeconomic. 14. SSEMI3 b In an oligopoly, when one firm cuts prices this can lead to a: A) Monopoly. B) Collusion. C) Price War. D) Surplus of that good. Show Answer Correct Answer: C) Price War. 15. When the market is controlled by one business, it is called a ..... A) Capitalistic Market. B) Command Market. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 16. The use of advertising, giveaways, or other promotions designed to convince buyers that the product is somehow unique or better. A) Imperfect choice. B) Consumer choice. C) Product differentiation. D) Nonprice competition. Show Answer Correct Answer: D) Nonprice competition. 17. Under monopoly, the degree of control over price is: A) None. B) Same. C) Very considerable. D) None of the above. Show Answer Correct Answer: C) Very considerable. 18. A single-price monopoly transfers A) Producer surplus to consumers. B) Consumer surplus to producers. C) Economic profit to consumers. D) Economic profit to the government. E) Economic profit to deadweight loss. Show Answer Correct Answer: B) Consumer surplus to producers. 19. In a Perfect Competition, the biggest factor in setting price levels is ..... A) Supply/demand. B) The stock market. C) Celebrity endorsements. D) Price of substitute products. Show Answer Correct Answer: A) Supply/demand. 20. Their is only one supplier in this market structure. A) Monopolistic competition. B) Pure / perfect competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 21. If you live in the city of Tucson, there is a single firm who collects trash, the city. Which market structure is this? A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 22. In perfect competition, what happens to the price if a firm increases its output? A) The price fluctuates. B) The price increases. C) The price decreases. D) The price remains the same. Show Answer Correct Answer: C) The price decreases. 23. When competing businesses divide a market amongst themselves A) Price fixing. B) Market allocation. C) Predatory pricing. D) Joint venture. Show Answer Correct Answer: B) Market allocation. 24. What is a business owned by stockholders/investors but operated by others? A) Sole proprietorship. B) Corporation. Show Answer Correct Answer: B) Corporation. 25. What is the main difference between monopolistic competition and perfect competition in terms of product differentiation? A) Price differentiation. B) Location differentiation. C) Product differentiation. D) Advertising differentiation. Show Answer Correct Answer: C) Product differentiation. 26. Which of the following is NOT a market structure on the Leaving Cert course? A) Monopoly. B) Imperfect Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: B) Imperfect Competition. 27. How does the government operate in a free enterprise economy? A) It takes a hands-off approach to business. B) It tells business, what to produce and what to sell. C) It interferes with business only when its profitable. D) It establishes laws & rules to maintain competition. Show Answer Correct Answer: D) It establishes laws & rules to maintain competition. 28. Which of the following is the best example of a public good? A) Highway system. B) Shopping mall. C) Country club. D) Movie theater. Show Answer Correct Answer: A) Highway system. 29. The market for happy face stickers is perfectly competitive, and the market price for these stickers is greater than the average total cost (ATC) of a typical firm.Which of the following is true about this market? A) Firms are charging prices higher than the marginal cost of producing stickers. B) Firms are producing an allocatively inefficient quantity and firms will exit this industry. C) Firms are earning positive economic profits and more firms will enter this industry. D) Firms are earning zero economic profits and the market is in long-run equilibrium. E) Firms are producing a cost-efficient quantity. Show Answer Correct Answer: C) Firms are earning positive economic profits and more firms will enter this industry. 30. What affect do excise taxes on production usually have on the supply curve? A) Increases supply, supply curve shifts right. B) Increases supply, supply curve shifts left. C) Decreases supply, supply curve shifts left. D) Decreases supply, supply curve shifts right. Show Answer Correct Answer: C) Decreases supply, supply curve shifts left. ← 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