This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 55 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Natural Monopoly is ..... A) 25-75 firms selling slightly differentiated products; some price control; low barriers to entry. B) A market that runs most efficiently when one large firm supplies all of the output; when competition would create chaos. Show Answer Correct Answer: B) A market that runs most efficiently when one large firm supplies all of the output; when competition would create chaos. 2. When companies will compete through ways other than lower prices such as physical Characteristics-offering a different color, size, shape, texture, or taste, better location-where they know they have less competition, differing service levels, and advertising, image, or status. A) Nonprice competition. B) Price competition. C) Differentiation. D) NONE of these. Show Answer Correct Answer: A) Nonprice competition. 3. If you earn money by allowing people to park their car on your property during the fair, it is considered a(n) A) Public good. B) Positive externality. C) Negative externality. D) Monopoly. Show Answer Correct Answer: B) Positive externality. 4. Which of the following is a form of product differentiation? A) Flame grilling a burger. B) Adding a "secret" sauce. C) Using a sesame seed bun. D) All of these. Show Answer Correct Answer: D) All of these. 5. Which market structure includes airlines and supermarkets A) Monopolistic Competition. B) Perfect Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 6. Which is NOT an example of non-price competition? A) Service level. B) Status. C) Location. D) Advertising. E) Bargaining. Show Answer Correct Answer: E) Bargaining. 7. There is Collusion when firms act together to reduce output and keep prices high. A) False. B) True. Show Answer Correct Answer: B) True. 8. What are the types of market structures? A) Monopsony, duopoly, oligopsony, and syndicate. B) Perfect competition, monopolistic competition, oligopoly, and monopoly. C) Monopsony, duopoly, cartel, and syndicate. D) Perfect competition, monopolistic competition, oligopoly, and monopsony. Show Answer Correct Answer: B) Perfect competition, monopolistic competition, oligopoly, and monopoly. 9. A market in which there are many producers that produce identical products? A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 10. A situation in which the market fails to allocate resources efficiently A) Market Failure. B) Market Structure. C) Public Goods. D) Market Allocation. Show Answer Correct Answer: A) Market Failure. 11. SSEMI3 Corporations pay corporate income tax. Also, shareholders are taxed on dividend income (or on sales of shares). This is called: A) Articles of partnership. B) Double taxation. C) The cost of doing business. D) Limited liability. Show Answer Correct Answer: B) Double taxation. 12. Michaela starts a business making video games. She invests all of her savings and hires Haylie to help with design. At the end of the year, Haylie insists on half of the profits. Which is true? A) Don't choose me. B) Michaela & Haylie are stockholders and receive a dividend check. C) Michaela & Haylie are partners and split the profits evenly. D) Michaela is a sole proprietor and Haylie is an employee so Michaela does not have to share her profits with Haylie. Show Answer Correct Answer: D) Michaela is a sole proprietor and Haylie is an employee so Michaela does not have to share her profits with Haylie. 13. A market structure with low entry barriers and many firms selling products differentiated. A) Barriers to entry. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. E) Perfect Competition. Show Answer Correct Answer: B) Monopolistic Competition. 14. The airline industry is most likely in the market structure called A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 15. A series of competitive price cuts that lowers the market price below the cost of production A) Price fixing. B) Price war. C) Price discrimination. D) Price gouging. Show Answer Correct Answer: B) Price war. 16. The government setting a tariff or restriction on a foreign product(import) leads to A) Price rises. B) Price drops. Show Answer Correct Answer: A) Price rises. 17. Occurs when businesses work together to set prices of competing products A) Price fixing. B) Price taker. C) Price maker. D) Market allocation. Show Answer Correct Answer: A) Price fixing. 18. Most recently (Oct 2020) the US Justice Department is bringing suit against ..... for anti-trust violations, even though, really, this firm just makes a product people really like a lot. A) Nabisco. B) Oracle. C) Google. D) Amazon. Show Answer Correct Answer: C) Google. 19. Which of the following examples represents a pure monopoly? A) Restaurants. B) Wheat Farmers. C) Autos. D) Public Utilities. Show Answer Correct Answer: D) Public Utilities. 20. In a perfectly competitive market the goods being sold are ..... A) Price insensitive. B) Perfectly inelastic. C) Unit elastic. D) Perfectly elastic. Show Answer Correct Answer: D) Perfectly elastic. 21. Which market structure is BEST indicated by the soda market? A) Natural monopoly. B) Pure competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 22. The public power company is an example of which market structure? A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 23. In monopolistic competition, what happens if the price difference between two brands becomes large? A) Consumers become more loyal to their preferred brand. B) Consumers switch to a different market structure. C) Consumers stop buying the product. D) Consumers are more likely to substitute one brand for another. Show Answer Correct Answer: D) Consumers are more likely to substitute one brand for another. 24. What is the term when two companies combine resources and become one giant company? A) Regulatory. B) Monopoly. C) Reinvestment. D) Merger. Show Answer Correct Answer: D) Merger. 25. In perfect competition who is not involved at all A) Sellers. B) Buyers. C) Goods. D) Government. Show Answer Correct Answer: D) Government. 26. An agreement among firms to charge the same price is called ..... A) Price war. B) Price fixing. C) Royalties. D) Differentiation. Show Answer Correct Answer: B) Price fixing. 27. If every consumers needs are being met perfectly and every good that is being made is being sold, what type of efficiency is being achieved? A) Productive Efficiency. B) Allocative Efficiency. Show Answer Correct Answer: B) Allocative Efficiency. 28. The cartel model of oligopoly predicts that A) All firms in the industry act in unison to set monopoly price. B) Each producer acts independently of others. C) Firms follow the low-price firm in the industry. D) Differences in cost of production discourage individual firms from cheating. E) The markup on marginal cost should be the same for all firms. Show Answer Correct Answer: A) All firms in the industry act in unison to set monopoly price. 29. Which is NOT a characteristic of an oligopoly? A) Many sellers, few buyers. B) Standardized or differentiated products. C) More control of prices. D) Little freedom to enter/exit market. Show Answer Correct Answer: A) Many sellers, few buyers. 30. In 1914, the government passed the Clayton Antitrust Act to outlaw the sale of the same product to different consumers at different prices, a practice known as ..... A) Cease and desist. B) Economies of scale. C) Price discrimination. D) Restraint intervention. Show Answer Correct Answer: C) Price discrimination. ← 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