This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 41 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market structure has very few existing in the world? A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 2. Because firms in a purely competitive market have to sell at equilibrium, they are ..... A) Price takers. B) Price setters. C) Price searchers. D) Price givers. Show Answer Correct Answer: A) Price takers. 3. Which of the following is not characteristic of a Monopolistic competition? A) Long run price occurs where Price = MIn ATC. B) It has a separate MR curve that is below the demand curve. C) Marginal cost is below the price. D) It can earn positive profit or economic loss in the short run only. E) It is never allocatively or productively efficient. Show Answer Correct Answer: A) Long run price occurs where Price = MIn ATC. 4. Bringing goods into the U.S. from another country. A) Imports. B) Exports. C) Shipment. D) Shipout. Show Answer Correct Answer: A) Imports. 5. In which of the following types of markets would you, in general, expect to find the lowest prices charged and the greatest amount of innovation? A) Perfect competition. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: A) Perfect competition. 6. Which of these is NOT an example of a targeted discount? A) A store that gives discounts to senior citizens on Wednesdays. B) A grocery store that cuts prices in the dairy aisle. C) Discounted airfare for buyers who buy their tickets a few weeks in advance. D) Manufactures who will refund part of the price to those customers who fill a rebate form. Show Answer Correct Answer: B) A grocery store that cuts prices in the dairy aisle. 7. LARGE NUMBERS OF BUYERS AND SELLERS, FREEDOM OF ENTRY AND EXIT, IDENTICAL PRODUCTS, WELL INFORMED BUYERS AND SELLERS ARE ALL CHARACTERISTICS OF: A) PRICE FIXING. B) MONOPOLY. C) OLIGOPOLY. D) PERFECT COMPETITION. Show Answer Correct Answer: D) PERFECT COMPETITION. 8. Which one of this is not a form of non-price competition? A) The new design of the product makes it unique and desirable. B) A convenient location makes business more accessible to customers. C) A high level of service brings customer satisfaction. D) Low costs can be passed as discounts to customers. Show Answer Correct Answer: D) Low costs can be passed as discounts to customers. 9. Use the following statements to answer this question:I. Markets that have only a few sellers cannot be highly competitive.II. Markets with many sellers are always perfectly competitive. A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false. Show Answer Correct Answer: D) I and II are false. 10. What are Start-Up Costs? A) Taxes that must be paid after selling goods. B) The expenses a firm must pay before it can begin to produce and sell goods. Show Answer Correct Answer: B) The expenses a firm must pay before it can begin to produce and sell goods. 11. Using style, service, advertising, or giveaways to create competition A) Nonprice Competition. B) Perfect Competition. C) Predatory pricing. D) Product Differentiation. Show Answer Correct Answer: A) Nonprice Competition. 12. Duopoly is a type of A) Perfect competitive market. B) Oligopoly market. C) Monopoly market. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly market. 13. An obstacle that makes it difficult for new firms to enter a market A) Unions. B) Licence. C) Barrier to entry. D) Hurdle. Show Answer Correct Answer: C) Barrier to entry. 14. A market structure in which there is only one seller is known as a A) Monopoly. B) Oligopoly. C) Pure competition. D) Monopolistic Competition. Show Answer Correct Answer: A) Monopoly. 15. True or False:Monopolies can set their own prices. A) True. B) False. Show Answer Correct Answer: A) True. 16. If you had a grievance against management, the least disruptive way to resolve the issue would be to A) Strike. B) Lockout. C) Collectively bargain. D) Boycott. Show Answer Correct Answer: C) Collectively bargain. 17. For a firm to operate at allocative efficiency, P must be ..... MC whereby there is ..... of deadweight loss (market failure). A) Equal / presence. B) Equal / no presence. C) More / no presence. D) Less / no presence. Show Answer Correct Answer: B) Equal / no presence. 18. Markets with more competition typically A) Have price fixing practices. B) Have price discrimination practices. C) Have lower prices. D) Have higher prices. Show Answer Correct Answer: C) Have lower prices. 19. The goal of a company in an oligopoly industry is to A) Increase market share and profits. B) Obtain the highest price possible. C) Always follow rivals if they raise price. D) Be the market leader in innovation. Show Answer Correct Answer: A) Increase market share and profits. 20. In this type of business, the owner receives all the profits but also takes all the risks and suffers all the losses A) Sole proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: A) Sole proprietorship. 21. How does the government try and prevent negative externalities? A) Shutting down those businesses. B) Taxation. C) Putting people in jail. D) Subsidies. Show Answer Correct Answer: B) Taxation. 22. How can you move from surplus to equilibrium A) Raise the price. B) Lower the price. C) Keep the price the same. D) All of the above. Show Answer Correct Answer: B) Lower the price. 23. By controlling supply, monopolies can control A) Need. B) Prices. C) Resources. D) None of above. Show Answer Correct Answer: B) Prices. 24. At the price, neither a surplus or a shortage exists; at this point the amount demanded equals the A) Consumer surplus. B) Inefficiency. C) Producer's surplus. D) Equilibrium. E) Dead weight. Show Answer Correct Answer: D) Equilibrium. 25. Which of the following events would be most likely to cause supply shock to gasoline? A) Hurricane near oil refineries. B) A light rain in the middle of the Indian Ocean. C) Snow fall on Mt Everest. D) Sand storm in the Sahara Desert. Show Answer Correct Answer: A) Hurricane near oil refineries. 26. Partnerships are the least common type of business organization? A) False. B) True. Show Answer Correct Answer: B) True. 27. Which of the following Market structures has the most sellers? A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 28. ..... is a market structure characterized by a very large number of buyers and sellers of an identical product. (Example:commodities like crude oil) A) Monopsons. B) Perfect competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Perfect competition. 29. A ..... only has one seller of a product with no close substitutes. A) Barrier to entry. B) Scarcity. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 30. Benefits that encourage people to act in certain ways are called A) Consumer. B) Efficiency. C) Utility. D) Incentives. Show Answer Correct Answer: D) Incentives. ← 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