This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 58 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. FEW SELLERS DOMINATE THIS MARKET A) OLIGOPOLY. B) PERFECT COMPETITION. C) PURE COMPETITION. D) MONOPOLY. Show Answer Correct Answer: A) OLIGOPOLY. 2. Occurs when businesses agree to set prices for competing products A) Predatory Pricing. B) Market Allocation. C) Price Fixing. D) Perfect Competition. Show Answer Correct Answer: C) Price Fixing. 3. Describe the four features of monopolistic competition A) Large number of firms, identical products, no market power, no barriers to entry or exit. B) Large number of firms, product differentiation, some market power, some barriers to entry or exit. C) Only a few firms, product differentiation, lots of market power, high barriers to entry or exit. D) Only one firm, no need for product differentiation, total market power, extremely high barriers to entry and exit. Show Answer Correct Answer: B) Large number of firms, product differentiation, some market power, some barriers to entry or exit. 4. When a given firm has more market power than other firms in a given industry this mostly means A) They can make more of the product sold in that industry. B) They can make a better quality product sold in that industry. C) They have less control over the price of the product sold in that industry. D) They have more control over the price of the product sold in that industry. Show Answer Correct Answer: D) They have more control over the price of the product sold in that industry. 5. SSEMI3 Which business organization has the disadvantage of paying special taxes (double taxation)? A) Sole Proprietorship. B) Corporation. C) Oligopoly. D) Partnership. Show Answer Correct Answer: B) Corporation. 6. A business that expands their production across many countries around the world is called a ..... A) Monopoly. B) Not profit. C) Co-operative. D) Multi-national. Show Answer Correct Answer: D) Multi-national. 7. A decrease in competition within an industry often results in A) More efficient resource allocation. B) Lower prices. C) A firm wielding economic and political power. D) Increased output. Show Answer Correct Answer: C) A firm wielding economic and political power. 8. SSEMI3 Which business organization has a single owner? A) Oligopoly. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: C) Sole Proprietorship. 9. There are many sellers of blue jeans. Each blue jean seller makes their product slightly different to set it apart from others. There is free entry and exit into the blue jean market. Which market structure does this describe? A) Oligopoly. B) Monopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: D) Monopolistic Competition. 10. In a command economy, who makes the decisions about what and how much to produce? A) Foreign investors. B) Individual consumers. C) Government or central authority. D) Private companies. Show Answer Correct Answer: C) Government or central authority. 11. Which of the following is NOT a condition for perfect competition? A) Many buyers and sellers participate in the market. B) Sellers offer a wide variety of products. C) Buyers and sellers are well informed about products. D) Sellers are able to enter and exit the market freely. Show Answer Correct Answer: B) Sellers offer a wide variety of products. 12. The cross elasticity of demand is the percentage change in demand for one good generated by a percentage change in price for another good A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. High barriers to entry and the lack of competition lead to governments usually regulating prices. A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 14. If the price of a firms variable input increases, which of the following will occur? A) The firms average fixed cost will decrease. B) The firm will decrease its level of production. C) The firms marginal costs will decrease at every level of output. D) The price of the good will decrease in the short run. E) More firms will enter the industry in the long run. Show Answer Correct Answer: B) The firm will decrease its level of production. 15. Which assumption states that firms in a perfectly competitive market are price takers? A) There are a large numbers of both buyers and sellers in the market. B) The product that each firm produces is homogenous. C) There is full knowledge of both profits and prices. D) There is freedom of entry and exit into and out of the industry. Show Answer Correct Answer: A) There are a large numbers of both buyers and sellers in the market. 16. Market structure in which only a few large sellers dominate and have ability to affect prices in an industry A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) Purely Competitive. Show Answer Correct Answer: A) Oligopoly. 17. The monopolist's demand curve is ..... whereas the perfectly competitive firm's demand curve is ..... A) Always downward sloping; always horizontal. B) Always horizontal; always downward sloping. C) The market demand curve; the industry demand curve. D) Fixed because it represents just one firm; variable because it is only a fraction of the industry's demand. E) Inelastic along its entire range; unit elastic along its entire range. Show Answer Correct Answer: A) Always downward sloping; always horizontal. 18. In natural monopolies, the price they can charge is A) Left up to the markets to decide. B) Regulated by the Public Utilities Commission. C) Voted on by their stockholders. D) Controlled by the US government. Show Answer Correct Answer: B) Regulated by the Public Utilities Commission. 19. Which market structure is characterized by a few major companies dominating the global market? A) Monopoly. B) Perfect Competition. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: C) Oligopoly. 20. Which resource is missing from the 4 resources? Material, Human, Information and ..... A) Natural resources. B) Microeconomics. C) Group resources. D) Financial resources. Show Answer Correct Answer: A) Natural resources. 21. Which of the following is a disadvantage of a corporation? A) Double Taxation. B) Difficult to raise money. C) Limited Life. D) Unlimited Liability. Show Answer Correct Answer: A) Double Taxation. 22. These costs are calculate by diving the cost by the output A) Total Cost. B) Variable Cost. C) Fixed Cost. D) Average Cost. Show Answer Correct Answer: D) Average Cost. 23. Elasticity of demand is greater in the short-run A) True. B) False. Show Answer Correct Answer: B) False. 24. ..... are money and other valuables belonging to an individual or business. A) Business profits. B) Equity. C) Assets. D) Specialization. Show Answer Correct Answer: C) Assets. 25. If Facebook and Twitter were to merge into one, what type of merger would this be? A) Vertical. B) Horizontal. Show Answer Correct Answer: B) Horizontal. 26. What market structure does Americans hate and tried to outlaw them? A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 27. Which of the following is NOT one of the three questions of economics? A) When to produce?. B) What to produce?. C) How to produce?. D) For whom to produce?. Show Answer Correct Answer: A) When to produce?. 28. The government's role in encouraging competition in the Free Enterprise system includes all of the following EXCEPT: A) Preventing monopolies. B) Providing public goods such as highways and the military. C) Ensuring consumers receive accurate information. D) Limiting the number of business that are allowed to open. Show Answer Correct Answer: D) Limiting the number of business that are allowed to open. 29. Gross Domestic Product A) Increase in prices. B) Decrease in prices. C) Total value of all goods and services produced in a year. D) Gross amount of products imported and exported. Show Answer Correct Answer: C) Total value of all goods and services produced in a year. 30. Which market structure is most likely to have high barriers to entry a small group controlling most of the market, and firms are Price Searchers? A) Oligopoly. B) Monopsons. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: A) Oligopoly. ← 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