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- 1. Multiple ChoiceA product that consumers see as the same, regardless of the producerDifferentiated productSimilar productStandardized product
- 2. Multiple ChoiceWhich of the following is the best example of a standardized product?CarBootsCerealSkim Milk
- 3. Multiple ChoiceA business that cannot set the prices itself, but accepts the market pricePrice makerPrice takerMonopolyCartel
- 4. Multiple ChoiceWhich is NOT a characteristic of perfect competition?Numerous buyers and sellersStandardized productDifferentiated productIndependent buyers and sellers
- 5. Multiple ChoiceOnly one seller sells a product for which there are no close substitutesMonopolyOligopolyMonopolistic competitionPerfect competition
- 6. Multiple ChoiceExists when many sellers offer similar, but not standardized productsMonopolyOligopolyMonopolistic CompetitionPerfect Competition
- 7. Multiple ChoiceThe least competitive market structureMonopolyOligopolyMonopolistic competitionPerfect competition
- 8. Multiple ChoicePrice makerDoes not have to consider competition when setting pricesMonopolyTakes the market priceBoth A and B
- 9. Multiple ChoiceFormal organization of sellers that agree to act together to set prices and limit outputMonopolyPrice makerOligopolyCartel
- 10. Multiple ChoiceExists when there are no other producers within a certain regionNatural monopolyGovernment monopolyTechnological monopolyGeographic monopoly
- 11. Multiple ChoiceExists when the business controls a manufacturing method or an invention protected by a patentNatural monopolyGovernment monopolyTechnological monopolyGeographic monopoly
- 12. Multiple ChoiceExists when there are economies of scaleNatural monopolyGovernment monopolyTechnological monopolyGeographic monopoly
- 13. Multiple ChoicePostal serviceNatural monopolyGovernment monopolyTechnological monopolyGeographic monopoly
- 14. Multiple ChoiceWater companyNatural monopolyGovernment monopolyTechnological monopolyGeographic monopoly
- 15. Multiple ChoiceThe only gas station in a small townNatural monopolyGovernment monopolyTechnological monopolyGeographic monopoly
- 16. Multiple ChoiceWhich is NOT an example of non-price competition?Excellent service50% off dealAttention getting advertisementsFree kids meal with every adult meal
- 17. Multiple ChoiceWhich is NOT a characteristic of monopolistic competition?Few sellers and many buyersSimilar but differentiated productsLimited control of pricesFreedom to enter/exit market
- 18. Multiple ChoiceCereal producers are a good example of which type of market structure?Perfect competitionMonopolyMonopolistic competitionOligopoly
- 19. Multiple ChoiceTo be considered an oligopoly, the 4 largest firms must control at least _____ of the market.30%40%50%60%
- 20. Multiple ChoiceWhich is NOT a characteristic of an oligopoly?Many sellers, few buyersStandardized or differentiated productsMore control of pricesLittle freedom to enter/exit market
- 21. Multiple ChoiceLaws that define monopolies and give government the power to control them and break them upRegulationAntitrust legislationMarket allocationDeregulation
- 22. Multiple ChoiceThe government does not regulate mergers between private companies.TrueFalse
- 23. Multiple ChoiceMergers are regulated by the government in order to keep trusts from forming.TrueFalse
- 24. Multiple ChoiceA primary reason for government regulation is to protect consumers.TrueFalse
- 25. Multiple ChoiceWhen businesses set prices below cost for a time for the sole purpose of putting their competitors out of businessPrice fixingMarket allocationPredatory pricingPerfect competition
- 26. Multiple ChoiceWhen competing businesses work together and agree to set prices for their competing productsPrice fixingMarket allocationPredatory pricingMerger
- 27. Multiple ChoiceWhen competing businesses divide a market amongst themselvesPrice fixingMarket allocationPredatory pricingJoint venture
- 28. Multiple ChoiceA cartel is an example of perfect competition.TrueFalse
- 29. Multiple ChoiceThe FTC does not allow mergers.TrueFalse
- 30. Multiple ChoiceAntitrust laws promote competition.TrueFalse
- 31. Multiple ChoiceThere are many substitute products available to choose from in a perfectly competitive market structure.TrueFalse
- 32. Multiple ChoiceThere are many substitute products available to choose from in a monopolistic market structure.TrueFalse
- 33. Multiple ChoiceMonopolists are able to control prices because they havemuch competition and many substitutesmuch competition and no substitutesno competition and many substitutesno competition and no substitutes
- 34. Multiple ChoiceUsing advertising to try to convince customers to buy one product over another is a form ofAntitrust competitionFocus competitionMonopolistic competitionNon-price competition
- 35. Multiple ChoiceA merger happens when one companyCauses another company to go out of businessDivides and forms several companiesJoins another company to form a single companySells their business to another company
- 36. Multiple ChoiceReducing or eliminating government control of business is calledDeregulationCease and desistDisclosureDiscrimination
- 37. Multiple ChoiceAn example of imperfect competition is whenA book seller freely exits the marketA farmer sells eggs, fruits, and vegetablesBuyers receive enough information to make educated buying choicesIce cream sellers join together to influence the price of ice cream sundaes
- 38. Multiple ChoiceWhich is NOT considered an unfair business practice?Price fixingMarket allocationPredatory pricingCompetitive pricing
- 39. Multiple ChoiceWhich of the following basically sets up mini monopolies?Price fixingMarket allocationPredatory pricingCompetitive pricing
- 40. Multiple ChoiceSome markets are perfectly competitive.TrueFalse
- 41. Multiple ChoiceWhich type of monopoly is the least harmful to consumers?Natural monopolyGovernment monopolyTechnological monopolyGeographic monopoly
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