This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 48 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 48 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When a factory pollutes a river, the resulting water pollution is an example of a ..... A) Neutral spillover effect. B) Negative externality. C) Public good. D) Technological monopoly. Show Answer Correct Answer: B) Negative externality. 2. Although many people are involved, it is treated by the law as though it were one person A) Sole proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: C) Corporation. 3. Battle of the Classes Volleyball Winning class A) Juniors. B) Sophomores. C) Freshmen. D) Seniors. Show Answer Correct Answer: D) Seniors. 4. What type of monopoly is based on based on the absence of other sellers in a certain area? A) Geographic Monopoly. B) Government Monopoly. C) Natural Monopoly. D) Technological Monopoly. Show Answer Correct Answer: A) Geographic Monopoly. 5. A market structure in which very few large sellers dominate the market is called what? A) Monopoly. B) Oligopoly. C) Pure competition. D) Perfect competition. Show Answer Correct Answer: B) Oligopoly. 6. A monopoly can best be summed up as A) One producer, a unique product. B) Many producers, identical products. C) Many producers, similar but varied products. D) Few producers, similar products. Show Answer Correct Answer: A) One producer, a unique product. 7. Products have the same basic purpose with some differences A) Product differentitation. B) Price takers. C) Collusion. D) None of above. Show Answer Correct Answer: A) Product differentitation. 8. The price of labor is known as A) Competition. B) Trust. C) Cost. D) Wage. Show Answer Correct Answer: D) Wage. 9. The degree of the product differentiation A) Number of companies on the market. B) Degree of product differentiation. Show Answer Correct Answer: B) Degree of product differentiation. 10. Which of the following will not increase the demand for education in Nigeria? A) Favourable government policies. B) Increase in Abuja residents. C) Increase in tuition. D) Increase in the number of schools nationwide. Show Answer Correct Answer: C) Increase in tuition. 11. Monopolists are able to divide consumers into groups and charge different prices. What is the name of this market practice? A) Price fixing. B) Price competition. C) Price discrimination. D) Non-price competition. Show Answer Correct Answer: C) Price discrimination. 12. Laws that give government the power to control monopolies and to break them up are called A) Antimonopoly laws. B) Antitrust laws. C) Antimerger laws. D) None of above. Show Answer Correct Answer: B) Antitrust laws. 13. When a firm sees average production cost go down, they are experiencing ..... A) Economies of scale. B) Introductions of grandeur. C) Start up costs. D) Monopoly. Show Answer Correct Answer: A) Economies of scale. 14. True or False:Non-profit organizations do not pay taxes. A) True. B) False. Show Answer Correct Answer: A) True. 15. Which of the following is an example of monopolistic competition? A) Grocery stores. B) Public water. C) Bananas. D) Running shoes. Show Answer Correct Answer: D) Running shoes. 16. Some goods or services can by "consumed" by individuals who do not have to pay for them to enjoy them, and in fact there is no practical way to make people pay for them. As a result, the market does not allocate resources sufficiently to provide those services or goods. What are these goods and services known as? A) Market failures. B) Public goods. C) Externalities. D) Negative. Show Answer Correct Answer: B) Public goods. 17. In a monopoly which of the following is not true? A) Products are differentiated. B) There is freedom of entry and exit into the industry in the long run. C) The firm is a price maker. D) There is one main seller. Show Answer Correct Answer: B) There is freedom of entry and exit into the industry in the long run. 18. Entrepreneurs play an important role in the economic system of the United States becausethey A) Understand best the complex nature ofgovernment regulations. B) Develop new and more efficient ways to use resources. C) Are most aware of continuing demands for product reliability and consumer safety. D) Have the marketing skills needed to succeed in corporations. Show Answer Correct Answer: B) Develop new and more efficient ways to use resources. 19. What are the barriers to entry by monopolies? A) Start-up costs, skill requirements, and brand recognition. B) High barriers of entry, patents/copyrights, and mergers. C) Economies of scale, natural monopolies, and skill requirements. D) Limiting information, high barriers of entry, and specific product. Show Answer Correct Answer: B) High barriers of entry, patents/copyrights, and mergers. 20. In a competitive industry, if the price of a product is trending upwards for whatever reason, then it is likely A) Sellers will start being more careless with their costs. B) The government will step in with effective price control measures. C) More firms will enter the market because they start seeing they can make some money there. D) The price will come back down because buyers don't want it to be too high. Show Answer Correct Answer: C) More firms will enter the market because they start seeing they can make some money there. 21. If Mark Etts expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is standardized and that he will have no control over the price. The market structure he is MOST likely participating in is A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 22. This is where goods and services are illegally bought and sold in violation of price controls A) Super Market. B) Farmer's Market. C) Flea Market. D) Black Market. Show Answer Correct Answer: D) Black Market. 23. Many buyers and sellers participate in the market. 2. Sellers offer identical products. 3. Buyers and sellers are well informed about products. 4. Sellers are able to enter and exit the market freely. Low start-up costs and low technology needed. A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: C) Perfect Competition. 24. The demand curve for a firm in perfect competition is vertical. A) True. B) False. Show Answer Correct Answer: B) False. 25. When businesses set prices below cost for a time for the sole purpose of putting their competitors out of business A) Price fixing. B) Market allocation. C) Predatory pricing. D) Perfect competition. Show Answer Correct Answer: C) Predatory pricing. 26. Standard Oil was controlled by which business leader? A) John D. Rockefeller. B) Andrew Carnegie. C) Cornelius Vanderbilt. D) JP Morgan. Show Answer Correct Answer: A) John D. Rockefeller. 27. Business can easily manipulate Prices A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: B) Monopoly. 28. Which of these economic goals is concerned with using resources wisely and reducing waste? A) Economic equity. B) Economic freedom. C) Economic efficiency. D) Economic security. Show Answer Correct Answer: C) Economic efficiency. 29. Karen uses both price and product differentiation to compete with her business rivals. What market structure does her business operate in? A) Monopolistic Competition. B) Perfect Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Monopolistic Competition. 30. The expenses a firm must pay before it can begin to produce and sell goods A) Start-up costs. B) Copyrights. C) Entry fees. D) Barriers to entry. Show Answer Correct Answer: A) Start-up costs. ← 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