Microeconomics Part 1 Quiz

Trademarks, Copyrights and Patents considered a barrier to entry into a market.

• True

• False

Which of the following are TRUE of a perfect competition? (Select all that apply)

• firms have no price control

• all firms advertise heavily

• there are high barriers to entry

• all products are identical (or nearly identical)

a CARTEL is most likely to form in which of the following market structures?

• Monopoly

• Monopolistic Competition

• Oligopoly

• Perfect Competition

What kind of market structure BEST describes the fast food industry?

• Monopoly

• Monopolistic Competition

• Oligopoly

• Perfect Competition

Which kind of business organization tends to get messy when they change owners/ end their business relationship?

• Sole Propietorship

• Partnership

• Corporation

John's business has made some poor decisions and now his business owes the bank 1 million dollars. If John cannot pay this amount back he could lose his house and other personal items...John's business is MOST LIKELY a

• Corporation

• Sole Proprietorship

• Partnership

This market structure is often times wasteful due to the fact that profits are virtually guaranteed regardless of how efficient they are:

• Monopoly

• Monopolistic Competition

• Oligopoly

• Perfect Competition

In this market structure firms have a small degree of price control. Firms use branding and advertisements to stand out among their competition.

• Monopoly

• Monopolistic Competition

• Oligopoly

• Perfect Competition

Which of the following is NOT true of a corporation?

• taxed twice

• can raise money easily

• can quickly adapt to market changes

• unlimited lifespan

Which of the following is TRUE of a sole proprietorship? (select all that apply)

• the business itself is tax exempt

• they can raise money easily

• owners have little control

• unlimited liability