This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 49 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. One DISADVANTAGE of a corporation is that A) It has limited liability. B) It has unlimited liability. C) It is taxed twice. D) None of above. Show Answer Correct Answer: C) It is taxed twice. 2. In Perfect Competition there are high barriers to entry A) True. B) False. Show Answer Correct Answer: B) False. 3. According to Lionel Robbins, what are ends? A) Needs. B) Resources. C) Demand. D) Supply. Show Answer Correct Answer: A) Needs. 4. Occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barriers, buyers have perfect or full information, and companies cannot determine prices A) Monopoly. B) Market. C) Perfect Competition. D) None of above. Show Answer Correct Answer: C) Perfect Competition. 5. An organized refusal to buy from a particular company is called: A) Lockout. B) Boycott. C) Picket. D) Strike. Show Answer Correct Answer: B) Boycott. 6. A business that cannot set the prices for its products but accepts the market price that is set by Supply and Demand A) Sole Proprietorship. B) Cartel. C) Price Taker. D) Price Maker. Show Answer Correct Answer: C) Price Taker. 7. Is no transaction cost a characteristic of monopoly market? A) False. B) True. Show Answer Correct Answer: A) False. 8. Firms in this kind of market produce goods that have very close substitutes. A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Pure Monopoly. Show Answer Correct Answer: C) Monopolistic Competition. 9. Why does the government give patents to companies (and create monopolies)? A) To control prices. B) To control output of goods. C) To allow the company to make back their investment. D) To allow price discrimination. Show Answer Correct Answer: C) To allow the company to make back their investment. 10. When businesses make an agreement to split up geographic areas for business purposes, it is called a A) Monopoly. B) Carton. C) Barrier to Entry. D) Cartel. Show Answer Correct Answer: D) Cartel. 11. How many phases are in the Business Cycle? A) 8. B) 6. C) 4. D) 2. Show Answer Correct Answer: C) 4. 12. What is the main source of market power in monopolistic competition? A) Perfect competition. B) Product differentiation. C) Economies of scale. D) Price discrimination. Show Answer Correct Answer: B) Product differentiation. 13. What is the equilibrium condition for a monopolistic competition firm? A) Total revenue equals total cost. B) Average revenue equals average cost. C) Price equals marginal cost. D) Marginal revenue equals marginal cost. Show Answer Correct Answer: D) Marginal revenue equals marginal cost. 14. Which below is NOT a type of monopoly? A) Natural Monopoly. B) Geographic Monopoly. C) Government Monopoly. D) Differentiated Monopoly. Show Answer Correct Answer: D) Differentiated Monopoly. 15. If two competing soft drink companies decided to merge and combine into one company, this would be an example of what? A) A horizontal merger. B) A vertical merger. C) A conglomerate. D) A corporation. Show Answer Correct Answer: A) A horizontal merger. 16. A sole supplier of a product with no close substitutes A) Barriers to entry. B) Perfect Competition. C) Monopoly. D) Oligopoly. E) Monopolistic Competition. Show Answer Correct Answer: C) Monopoly. 17. Who would NOT be considered an entrepreneur? A) A doctor who starts their own practice. B) A doctor who works at a hospital. C) A doctor who wrote a book in their spare time. D) None of above. Show Answer Correct Answer: B) A doctor who works at a hospital. 18. The additional revenue that will be generated by increasing product sales by one unit. A) Relative Revenue. B) Marginal Revenue. C) Profit Maximization. D) Profit. Show Answer Correct Answer: B) Marginal Revenue. 19. Stocks:..... Bonds:..... A) Supply, demand. B) Dividends, interest. C) Lending, buying. D) Corporation, sole proprietorship. Show Answer Correct Answer: B) Dividends, interest. 20. What is the relationship between marginal revenue and price elasticity of demand? A) They have no relationship. B) They are inversely related. C) They are unrelated. D) They are directly related. Show Answer Correct Answer: B) They are inversely related. 21. To attract buyers, monopolistic competitors tend to rely on ..... A) Low prices. B) Superior products. C) Price controls. D) Advertising and promotions. Show Answer Correct Answer: D) Advertising and promotions. 22. A monopoly that exists because a firm controls an invention is called a A) Geographic monopoly. B) Technological monopoly. C) Natural monopoly. D) None of above. Show Answer Correct Answer: B) Technological monopoly. 23. A socialist economy would pursue all of the following measures or goals EXCEPT A) Public ownership of property. B) Economic planning by the government. C) Laissez-faire policies. D) None of above. Show Answer Correct Answer: C) Laissez-faire policies. 24. Four Kinds of Monopolies A) Government Monopoly. B) Natural, Government, Technological, Geographic. C) Technological Monopoly. D) Natural Monopoly. Show Answer Correct Answer: B) Natural, Government, Technological, Geographic. 25. Which of the following is largely responsible for the growth of a free enterprise system? A) Government. B) Market efficiency. C) Gross Domestic Product. D) Profit motive. Show Answer Correct Answer: D) Profit motive. 26. Which market structure has relatively low entry and exit barriers and firms produce differentiated products? A) Perfect Competition. B) Monopoly. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: D) Monopolistic Competition. 27. A market structure that has only a few sellers that offer a similar product. A) Monopoly. B) Perfect competition. C) Price fixing. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 28. True/False:The monopolist is a price maker, which means he/she can change the price of the product in order to minimize profits. A) False. B) True. Show Answer Correct Answer: A) False. 29. If you expect gas to be more expensive tomorrow, you might buy gas ..... A) Today. B) Yesterday. C) Tomorrow. D) Next tuesday. Show Answer Correct Answer: A) Today. 30. If a market changes from monopoly to perfect competition, what will happen? A) Prices will increase and market quantity will rise. B) Prices will fall and market quantity will rise. C) Prices will fall and market quantity will fall. D) Nothing. Show Answer Correct Answer: B) Prices will fall and market quantity will rise. ← 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