This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 43 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market structure is characterized by a large number of buyers and sellers, homogeneous products, and perfect information? A) Oligopoly. B) Monopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 2. The government does not try to eliminate all monopolies. Why? A) It would be impossible. B) Not all monopolies are bad. C) The government itself is a monopoly. D) The aren't any monopolies anymore. Show Answer Correct Answer: B) Not all monopolies are bad. 3. Microsoft, Sony, and Nintendo would be examples what of market structure? A) Monopoly. B) Perfect competition. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Oligopoly. 4. Positive and negative externalities are called market failures because A) They cause imperfect competition. B) They lead to higher prices. C) Their cost and benefits are not reflected in the prices paid by buys and received by sellers. D) They provide public goods. Show Answer Correct Answer: C) Their cost and benefits are not reflected in the prices paid by buys and received by sellers. 5. NPF-Consumer Confidence bounces back strongly. What curve is impacted in the TV market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: B) Demand Right. 6. A shortage of a particular good is often a signal for a producer to A) Lower the production of that good. B) Raise the prices of that good. C) Shift production to another good. D) Lower the prices of that good. Show Answer Correct Answer: B) Raise the prices of that good. 7. Actually differentiating the market offering to create superior customer value A) Differentiation. B) Advertising. C) Trademarking. D) Sales and value tactics. Show Answer Correct Answer: A) Differentiation. 8. In the short run firms in perfect competition will still produce provided: A) The price covers average fixed cost. B) The price covers variable costs. C) The price covers fixed costs. D) The price covers average variable cost. Show Answer Correct Answer: D) The price covers average variable cost. 9. Examples of Monopoly market?i) JPSii) Googleiii) Facebook iv) National Water Commission v ) KFC A) I, ii, iii & iv. B) Ii, iii & v. C) And & c. D) All of the above. Show Answer Correct Answer: A) I, ii, iii & iv. 10. Price discrimination is not possible under A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 11. Allows each member of society to make choices about how to use their resources A) Security. B) Freedom. C) Satbiility. D) Efficiency. Show Answer Correct Answer: B) Freedom. 12. A government license to profit from your invention. A) Tool. B) Patent. C) Binky. D) Copyright. Show Answer Correct Answer: B) Patent. 13. Describe the role of a monopolist in setting prices. A) A monopolist sets prices based on the cost of production. B) A monopolist sets prices based on their market power and the demand for their product. C) A monopolist sets prices based on the competition in the market. D) A monopolist sets prices based on the government regulations. Show Answer Correct Answer: B) A monopolist sets prices based on their market power and the demand for their product. 14. Which of the following best describes what will happen in the long run if many firms in a perfectly competitive market are earning short-run positive economic profits? A) Firms' costs will decrease, causing their economic profits to increase. B) Firms will enter the industry, causing market demand to increase. C) Firms will go out of business, causing market demand to decrease. D) Firms will enter the industry, causing market supply to increase. E) Firms will go out of business, causing market supply to decrease. Show Answer Correct Answer: D) Firms will enter the industry, causing market supply to increase. 15. Why is price-fixing illegal in the United State? A) It is unethical. B) It restrains trade. C) It leads to a monopoly. D) It creates unnaturally high tariffs. Show Answer Correct Answer: B) It restrains trade. 16. This type of monopoly encourages the granting of patents A) Government Monopoly. B) Technological Monopoly. C) Geographic Monopoly. D) Natural Monopoly. Show Answer Correct Answer: B) Technological Monopoly. 17. What is it called when the government creates a law or restriction? A) Deregulation. B) Regulation. Show Answer Correct Answer: B) Regulation. 18. In which market structure would you find a great deal of advertising? A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic competition. 19. David, Nora, and Scarlett are participating in a market simulation game. In which market structure of the game would they have clear incentives to gather as much information as possible? A) Monopolistic Competition. B) Oligopoly. C) Pure Competition. D) Monopoly. Show Answer Correct Answer: C) Pure Competition. 20. In this market, sellers have the most control over price A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Monopoly. 21. What are the advantages of a corporation as a business organization? A) Unlimited liability, inability to raise capital, limited existence, integration of ownership and management. B) Limited liability, inability to raise capital, limited existence, integration of ownership and management. C) Unlimited liability, ability to raise capital, limited existence, integration of ownership and management. D) Limited liability, ability to raise capital, perpetual existence, separation of ownership and management tagsSSEMI3. Show Answer Correct Answer: D) Limited liability, ability to raise capital, perpetual existence, separation of ownership and management tagsSSEMI3. 22. A monopoly based on the absence of sellers in a certain location is called A) Natural monopoly. B) An oligopoly. C) Economies of scale. D) A geographic monopoly. Show Answer Correct Answer: D) A geographic monopoly. 23. TRUE OR FALSE:In perfect (or pure) competition, sellers sell IDENTICAL products. A) False. B) True. Show Answer Correct Answer: B) True. 24. Which of the following in NOT an example of price discrimination? A) Senior discounts. B) Sales. C) Children Fly Free. D) Student discount. Show Answer Correct Answer: B) Sales. 25. Is the second market structure in #1 incorporated or unincorporated? A) Unincorporated. B) Incorporated. Show Answer Correct Answer: A) Unincorporated. 26. Which of the following is considered to be an advantage of the corporate form of business organization? A) Disagreement among owners. B) Low non-monetary rewards. C) Expensive startup costs. D) Limited liability for stockholders. Show Answer Correct Answer: D) Limited liability for stockholders. 27. In which market structure does a single firm or entity have complete market power and can set prices without competition? A) Monopoly. B) Perfect Competition. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 28. In this market structure, products are similar but have some differences. These slight differences allow producers to have some control over price. A) Monopoly. B) Perfect Competition. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: C) Monopolistic Competition. 29. In this market, 2-24 firms control the market, products can be slightly differentiated, there are high barriers to entry, & lots of control over price A) Monopoly. B) Oligopoly. Show Answer Correct Answer: B) Oligopoly. 30. What are the disadvantages of perfect competition? A) Higher profits, lack of government intervention, limited market stability. B) Higher prices, lack of competition, limited market efficiency. C) Higher consumer choices, lack of price transparency, limited market efficiency. D) Lower profits, lack of innovation, limited consumer choices. Show Answer Correct Answer: D) Lower profits, lack of innovation, limited consumer choices. ← 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