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- 1. Multiple Choice
Which of the following is NOT a Market Structure?
Perfect Competition
Oligopoly
Monopoly
Corporation
- 2. Multiple Choice
Markets like automobiles, cell phones, cable TV, and internet providers are examples of which market structure?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
- 3. Multiple ChoiceWhich is NOT a characteristic of a monopoly?Seller sets the market priceEntry into the market is easyFirm sells a unique productOne seller
- 4. Multiple ChoicePerfect competition involves:Sellers working together to set pricesA large number of buyers & sellersDifficulty entering & exiting the marketLittle information is available to buyers
- 5. Multiple ChoiceThe market for milk is an example of perfect competition. Why?Sellers offer a nearly identical productAnyone can start a dairy farm or leave the dairy business at any timeMany people buy and sell milkAll of the above
- 6. Multiple ChoiceList the four market structures in order from least competitive to most competitive.Oligopoly, Monopoly, Perfect Competition, Monopolistic CompetitionPerfect Competition, Oligopoly, Monopoly, Monopolistic CompetitionMonopoly, Oligopoly, Monopolistic Competition, Perfect CompetitionMonopoly, Monopolistic Competition, Perfect Competition, Oligopoly
- 7. Multiple ChoiceIf a major car company such as Ford lowers their prices, what are other car companies likely to do?Raise their pricesGo out of businessMaintain their current pricesLower their prices
- 8. Multiple ChoiceWhat are the advantages of economies of scale?Costs less per unit to produce an itemReduces barriers to entry in the market and increases competitionBetter quality products are produced
- 9. Multiple ChoiceHow many firms are there in a perfect competition?12-5Many
- 10. Multiple ChoiceFactors that make it difficult for new firms to enter a market are calledBarriers to entryFactors of productionLimited supplyMonopolistic Outlook
- 11. Multiple ChoiceHow many firms are there in a monopoly?12-5Many
- 12. Multiple ChoiceAn industry that is dominated by a few large firms ismonopolistic competition.a monopoly.perfect competition.an oligopoly.
- 13. Multiple ChoiceChoose the example that goes best with an oligopoly.applescell phone providersutilitiesclothing
- 14. Multiple ChoiceWhich is NOT a characteristic of perfect competition?difficult entry into the marketmany sellersidentical productno control over price
- 15. Multiple ChoiceWhich is NOT a characteristic of a monopoly?Seller sets the market priceEntry into the market is easyFirm sells a unique productOne seller
- 16. Multiple ChoicePerfect competition is characterized bya large number of sellers and buyers.diverse products.sellers acting together to set prices.uninformed buyers and sellers.
- 17. Multiple ChoiceWhich market has no competition?perfect competitionoligopolymonopolymonopolistic competition
- 18. Multiple ChoiceWhich scenario is an example of a monopoly?A local water company is the sole provider of water for a small town.A dry cleaner specializes in environmentally friendly cleaning methods.A farmer produces green beans for sale at a farmer's market.A small number of cereal companies produce most of the cereal on the market.
- 19. Multiple Choice
Actions of one firm will affect other firms
True
False
- 20. Multiple Choice
A barrier to entry is
an economic term for economies of scale
illegal in most markets
anything that prevents new firms from entering the market
a factor that increases competition
- Answer choicesTagsAnswer choicesTags