This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Promotes a just and fair system A) Freedom. B) Growth. C) Equity. D) Security. Show Answer Correct Answer: C) Equity. 2. Which type of business organization is owned and operated by a single individual? A) Partnership. B) Limited liability company tagsSSEMI3. C) Corporation. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 3. Which statement is most accurate? A) Markets can sometimes fail. B) Markets can theoretically fail, but not in reality. C) Market failure is a myth. D) Market failure is an unproven hypothesis. Show Answer Correct Answer: A) Markets can sometimes fail. 4. Competition promotes innovation. A) False. B) True. Show Answer Correct Answer: B) True. 5. Susan works for the state of Georgia as a probation officer. Her labor provides the government with a service, and in return she is paid by the state. With her salary, Susan buys goods she needs from private firms. She also pays taxes to the government so they can continue to provide public services that people need. Susan's economic interdependence with the government and private businesses is referred to as A) The monetary cycle. B) Circular flow of economic activity. C) The money flow. D) Economic independence. Show Answer Correct Answer: B) Circular flow of economic activity. 6. Market structure where market power is increased because they are the only or very few who provide this product. A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Monopoly. 7. A dump truck is an example of which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 8. When competitors cut their prices really low to win business A) Collusion. B) Price War. Show Answer Correct Answer: B) Price War. 9. What kind of market structure is efficient with 1 business supplying? A) Oligopoly. B) Natural monopoly. C) Perfect competition. D) Imperfect competition. Show Answer Correct Answer: B) Natural monopoly. 10. Which of the following is not a characteristic of a competitive market? A) There are many buyers and sellers in the market. B) The goods offered for sale are largely the same. C) Firms generate small but positive economic profits in the long run. D) Firms can freely enter or exit the market. Show Answer Correct Answer: C) Firms generate small but positive economic profits in the long run. 11. Which of the following examples represents a Monopolistic Competition? A) Textile farmer. B) Cereals. C) Airlines. D) Music. Show Answer Correct Answer: D) Music. 12. Which market structure has the most pricing power? (Pricing power is the ability to raise your price above your competition and still make sales) A) Monopolistic competition. B) Perfect competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 13. Oligopolies control prices by A) Non-price competition. B) Magic. C) Collusion. D) All of the above. Show Answer Correct Answer: C) Collusion. 14. Business model in which stock is sold to help raise money for re-investment in the company A) Corproation. B) Sole proprietorship. C) Partnership. D) None of above. Show Answer Correct Answer: A) Corproation. 15. The market for razor blades is dominated by Procter and Gamble's Gillette and Edgewell Personal Care's razors. What level of barriers of entry are there in this market? A) Low. B) None. C) High. D) None of above. Show Answer Correct Answer: C) High. 16. In game theory, when players have strong preference for a strategy, it is called A) Differentiated strategy. B) Preferred strategy. C) Dominated strategy. D) Dominant strategy. Show Answer Correct Answer: D) Dominant strategy. 17. What is product differentiation in monopolistic competition? A) The practice of selling identical products at different prices in different markets. B) The strategy of making a product or service appear distinct from others in the market through branding, design, quality, or other features. C) The process of reducing the price of a product to attract more customers. D) The act of copying the design or features of a competitor's product. tagsSSEMI3. Show Answer Correct Answer: B) The strategy of making a product or service appear distinct from others in the market through branding, design, quality, or other features. 18. Which of these market structures has more market power over setting prices? A) Pure competition. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Monopoly. 19. A soft drink manufacturer that decides to buy a sugar plantation to ease the production of its products would be an example of ..... A) Conglomerate. B) Horizontal merger. C) Vertical merger. D) Corporation. Show Answer Correct Answer: C) Vertical merger. 20. Demand is unit elastic if it is less than 1.0 A) True. B) False. Show Answer Correct Answer: B) False. 21. McDonalds is in what market A) Monopolistic Competition. B) Perfect Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: A) Monopolistic Competition. 22. All of the houses in Glynn County are serviced by Georgia Power for their electricity. What type of monopoly is this? A) Government Monopoly. B) Natural Monopoly. C) Geographic Monopoly. D) Technical Monopoly. Show Answer Correct Answer: B) Natural Monopoly. 23. The soft drink industry, including Coca-Cola, Pepsi Co., and the Schweppes Group are examples of: A) Monopoly. B) Perfect competition. C) Oligopoly. D) None of above. Show Answer Correct Answer: C) Oligopoly. 24. In the Long Run, what is the equilibrium position of a Perfectly Competitive Firm? A) MC = MR = TC = AR. B) MC = MR = AC = AR. C) MC = MR = AVC = AR. D) MC = MR = AFC = AR. Show Answer Correct Answer: B) MC = MR = AC = AR. 25. The most recognizable form of non-price competition is? A) Better Customer Service. B) Advertising. C) More Locations. D) Low Price. Show Answer Correct Answer: B) Advertising. 26. What is the definition of an oligopoly? A) Eight to ten firms producing 60 percent to 70 percent of the output. B) Eight to ten firms producing 90 percent of the output. C) Two to four firms producing 70 percent to 80 percent of the output. D) One firm producing 95 percent of the output. Show Answer Correct Answer: C) Two to four firms producing 70 percent to 80 percent of the output. 27. In monopolistic competition, product differentiation can be achieved by ..... A) Advertising. B) Cooperation. C) Causing non-price competition. D) All of the above. Show Answer Correct Answer: A) Advertising. 28. If Price > ATC;Then, Firm earns an economic profit A) True. B) False. Show Answer Correct Answer: A) True. 29. Which market structure has a single seller with complete control over the market? A) Monopolistic competition. B) Perfect competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 30. -Few sellers-Some control over price-High market entry barriers-Some product differentiation, What type of market structure is described by the list above? A) Pure competition. B) Natural monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: C) 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books