Economics Packet Quiz 4

The game console industry is an example of which market structure?

• Monopoly

• Pure Competition

• Oligopoly

• Monopolistic competition

A market in which a single seller dominates

• monopoly

• natural monopoly

• license

• market power

Which of the following is a source of monopoly power?

• Scarcity
• Elasticity of demand
• Barriers to entry
• Low Profits

A barrier to entry is

• A law established by the government to protect new industries.

• A commitment on the part of big business to allow smaller companies to compete.

• An obstacle that prevents additional workers from entering an industry, such as a union.

• An obstacle that makes it difficult for new firms to enter a market.

Why does no one firm dominate in a perfect competition?

• No firm wants to

• Each firm sells to different people

• Each firm produces exactly the same towards total supply that they cannot influence prices

• One firm will eventually dominate and make it a monopoly

List the four market structures in order from least competitive to most competitive.

• Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
• Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
• Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
• Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly

Economic system where government controls everything.

• Market
• Command
• Mixed
• Free Enterprise

Type of economic system where there is no government control.

• Mixed
• Market
• Free Enterprise
• Command

If the supply of a good is higher than the demand, what happens to the price?

• It stays the same
• Price goes down
• Price goes up
• It's FREE!!

If there is no competition in your market, how would that impact your business?

• You could charge more for your product
• You would make more
• You would hire more employees
• You would charge less for your product