This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Restrictions on the entry of a new firm into an industry A) Perfect Competition. B) Monopoly. C) Oligopoly. D) Barriers to entry. E) Monopolistic Competition. Show Answer Correct Answer: D) Barriers to entry. 2. Government regulations to keep competition fair and protect consumers change the economic system from a market system to a: A) Modified free market economy. B) Command economy. C) Traditional economy. D) None of above. Show Answer Correct Answer: A) Modified free market economy. 3. Limited Liability means that stockholders can lose their investment if the corporation fails. A) True. B) False. Show Answer Correct Answer: A) True. 4. Imagine a product in which consumers would purchase it regardless of the price. Whether it be $ 5 or $ 500 they would continue to purchase it. How would you describe the demand for this product? A) Perfectly inelastic. B) Perfectly competitive. C) Perfectly monopolistic. D) Perfectly elastic. Show Answer Correct Answer: A) Perfectly inelastic. 5. Laws in cities that restrict where businesses can operate. A) Anti-Trust. B) Collusion. C) Zoning. D) Patent. Show Answer Correct Answer: C) Zoning. 6. The monopoly firm exists because of ..... A) 1. government protection. B) 2. Monopoly in factors. C) 3.Large production. D) All of these. Show Answer Correct Answer: D) All of these. 7. Which market structure involves on ONE firm and has VERY HIGH barriers to entry? A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: C) Monopoly. 8. Which of the following products are usually found in imperfect competition? A) Bananas. B) Shoes. C) Onions. D) Firewood. Show Answer Correct Answer: B) Shoes. 9. Which market structure best describes a market with homogeneous products and many sellers? A) Oligopoly. B) Geographic monopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 10. A government license that gives the inventor of a new product the exclusive right to produce and sell it A) License. B) Market power. C) Patent. D) Economies of scale. Show Answer Correct Answer: C) Patent. 11. True or False:The United States government encourages more monopolies. A) False. B) True. Show Answer Correct Answer: A) False. 12. A way to attract customers without lowering prices is A) Cartel. B) Barriers to entry. C) Nonprice competition. D) Collusion. Show Answer Correct Answer: C) Nonprice competition. 13. What is the condition for allocative efficiency? A) P = AC. B) P = MR. C) P = AR. D) P = MC. Show Answer Correct Answer: D) P = MC. 14. Which type of business model includes buying large bulk items for their members? A) Multi-national. B) Monopoly. C) Non-profit. D) Cooperative. Show Answer Correct Answer: D) Cooperative. 15. In a perfectly competitive market, how many producers are there? A) A few. B) A large number. C) Only one. D) None. Show Answer Correct Answer: B) A large number. 16. An oligopoly has..... A) Many buyers and sellers. B) Only a few sellers. C) One seller. D) No control over price. Show Answer Correct Answer: B) Only a few sellers. 17. Bernice owns her own local gift shop. She acquired the necessary loans to open it, assumes all the financial risk herself, and makes all the decisions. It sounds like Bernice's business is a/an A) Partnership. B) Corporation. C) Sole proprietorship. D) Franchise. Show Answer Correct Answer: C) Sole proprietorship. 18. What is an example of an oligopoly? A) Chip industry. B) Cellphone industry. C) Milk industry. D) Cookie industry. Show Answer Correct Answer: B) Cellphone industry. 19. Products that only differ slightly from their competition and sell at different prices in different markets A) Differentiated products. B) Homogeneous products. C) Grade. D) Perfect competition. Show Answer Correct Answer: A) Differentiated products. 20. When the government sets a price floor on earned income, it is called which of the following? A) Minimum wage. B) Employment guarantee. C) Market equilibrium rate. D) Base-level wage. Show Answer Correct Answer: A) Minimum wage. 21. Which company is an example of a monopoly? A) Pepsi. B) DeBeers. C) Coca Cola. D) AT&T. Show Answer Correct Answer: B) DeBeers. 22. Which of the following market types has all firms selling products so identical that buyers do not care from which frim they buy? A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 23. Which of the following is NOT a merit good? A) Education. B) Public libraries. C) Health services. D) Energy drinks. Show Answer Correct Answer: D) Energy drinks. 24. ..... is a market structure characterized by a very large number of buyers and sellers of an identical product. A) Monopoly. B) Pure (perfect) competition. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Pure (perfect) competition. 25. What type of liability do sole proprietorships have? A) Corporate Liability. B) Limited Liability. C) No Liability. D) Unlimited Liability. Show Answer Correct Answer: D) Unlimited Liability. 26. According to the principle of laissez-faire, A) Governments either should not be involved in the economy, or be as uninvolved as possible. B) Government should regulate business to create a more fair distribution of resources. C) Government should own a share of businesses to help earn profits and reduce taxes. D) Government should make most decisions concerning business. Show Answer Correct Answer: A) Governments either should not be involved in the economy, or be as uninvolved as possible. 27. When the few large sellers come together and fix prices A) Collusion. B) Price takers. C) Product differentitation. D) None of above. Show Answer Correct Answer: A) Collusion. 28. The organization of a market, based mainly on the degree of competition. A) Externality. B) Perfect Competition. C) Public goods. D) Market Structure. Show Answer Correct Answer: D) Market Structure. 29. Which is an example of a seller in a monopoly A) Standard Oil. B) Coke and Pepsi. C) Restaurants. D) Oranges in markets in Guadalajara. Show Answer Correct Answer: A) Standard Oil. 30. What are the two main types of competition in the market structures? A) Perfect competition and imperfect competition. B) Monopoly and Oligopoly. C) Local and Global. D) Supply and Demand. Show Answer Correct Answer: A) Perfect competition and imperfect competition. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 2Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books