economics test!! ch 9

 From an economist’s point of view, what is a market?

• a place where buyers and sellers gather

• the arrangements that people make for trading

• a group of producers that make similar products

• the demand for a particular product

Which of the following products has the greatest potential for differentiation?

• milk

• corn

• candy

• wheat

Which of the following is not a characteristic that distinguishes one industry from another?

• form of ownership

• the number of firms

• differences in products

• ease of entering or exiting

Which of the following is a possible barrier to entry?

• securing finances

• obtaining a patent

• attracted customers

• hiring managers

On the continuum of market competition given in your text, which of the following is a characteristic of a monopoly?

• a large number of firms

• great ability to control price

• much market information available

• ease of entry into the industry

Which of the following is true of perfect competition?

• few firms

• great control of prices

• differentiated products

• ease of entry

Which of the following most likely operate under imperfect competition?

• potato farmers

• petroleum refiners

• electric companies

• clothing manufacturers

Which of the following is not characteristic of imperfect competition?

• a large number of firms

• loose control of prices

• undifferentiated products

• relative ease of entry/exit

Which of the following is always characteristic of an oligopoly?

• differentiated products

• mutual independence

• three or more companies

• easy to enter, hard to exit

Which of the following is the most well-known cartel today?

• OPEC

• standard oil

• microsoft

• AT&T