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WorksheetsBarclay Econ Mkt Struc 7
Total questions: 119
Worksheet time: 2hrs 2mins
Name
Class
Date
1.
When there is a perfect competition, each individual firm is too small to
a)
influence price
b)
influence sales
c)
influence demand
d)
influence supply
2.
All of the following are characteristics of monopolistic competition EXCEPT
a)
downward sloping demand curve for each firm.
b)
no market power among individual firms.
c)
slightly differentiated products.
d)
low entry barriers.
3.
An example of a commodity is
a)
a one-of-a-kind brand
b)
a copyrighted book
c)
a bushel of wheat
d)
an automobile
4.
Suppose the market for soybeans is perfectly competitive. What would happen if Farmer Brown raised the price for his soybeans?
a)
He would sell no beans.
b)
He would increase his profits.
c)
His supply curve for soybeans would shift to the right.
d)
His supply curve for soybeans would shift to the left.
5.
Suppose the market for soybeans is perfectly competitive. What would happen if Farmer Brown raised the price for his soybeans?
a)
He would sell no beans.
b)
He would increase his profits.
c)
His supply curve for soybeans would shift to the right.
d)
His supply curve for soybeans would shift to the left.
6.
Suppose the market for soybeans is perfectly competitive. What would happen if Farmer Brown raised the price for his soybeans?
a)
He would sell no beans.
b)
He would increase his profits.
c)
His supply curve for soybeans would shift to the right.
d)
His supply curve for soybeans would shift to the left.
7.
All of the following are features of perfect competition EXCEPT
a)
many buyers and sellers
b)
differentiated products
c)
buyers that are fully informed about price, quality, and availability of products.
d)
easy entry into & exit from the industry
8.
Farmers operate in a perfectly competitive market. Why?
a)
Farmers can control the output on their own land.
b)
Farmers can sell their produce directly to consumers.
c)
The amount one farmer sells has no affect on the market price.
d)
The amount one farmer sells affects the price another farmer can charge.
9.
A firm that can lower its average cost per unit by selling more is operating with
a)
efficiency
b)
diseconomies of scale
c)
collusion
d)
excess capacity
10.
Compared with competing firms, cartels usually
a)
produce more
b)
thrive more in the United States
c)
charge less
d)
earn more profit.
11.
An oligopoly is comprised of how many firms?
a)
A few
b)
many
c)
one
d)
most
12.
All of the following are problems with monopolies except
a)
resource waste
b)
increased consumer surplus
c)
inefficiencies in operations
d)
higher prices
13.
A joining of Ford, Daimler-Chrysler, and General Motors to form a single firm would be an example of
a)
a vertical merger
b)
a natural monopoly
c)
a horizontal merger
d)
a cartel
14.
In a market for a commodity, such as wheat, the demand curve facing an individual farmer would
a)
slope downward from left to right
b)
be vertical at the equilibrium quantity
c)
be horizontal at the market price
d)
slope upward from left to right
15.
What large US corporation was recently found to have a monopoly in one area of its business?
a)
General Motors
b)
Ford
c)
IBM
d)
Microsoft
16.
What large industry was deregulated by the federal government in 1978?
a)
the airline industry
b)
the auto industry
c)
the railroad industry
d)
the computer industry
17.
An example of a product that could be sold by an undifferentiated oligopoly is
a)
a computer printer
b)
a gallon of paint
c)
a barrel of oil
d)
a bar of soap
18.
All of the following could make a cartel collapse except
a)
attempts to block the energy of rival firms into the market
b)
technological change that erodes the cartel's market power
c)
widespread cheating by individual cartel members
d)
entry of rival firms into the market
19.
__ is a market structure with many fully informed buyers & sellers of an identical product and ease of entry.
a)
perfect competition
b)
monopoly
c)
oligopoly
d)
monopolistic competition
20.
A product that is standardized across sellers is a(n)
a)
commodity
b)
monopoly
c)
diseconomies
d)
merger
21.
A(n) __ is the sole supplier of a product with no close substitutes.
a)
monopoly
b)
oligopoly
c)
monopolistic competition
d)
perfect competition
22.
__ is the ability of a firm to raise its price without losing all sales to rivals.
a)
market power
b)
minimum efficient scale
c)
merger
d)
deregulation
23.
A monopolized market has high __ that make it difficult for a new firm to come into the industry.
a)
barriers to entry
b)
deregulation
c)
minimum efficient scale
d)
market power
24.
__ is a market structure with low entry barriers and many firms selling products differentiated enough that each firm's demand curve slopes downward.
a)
monopolistic competition
b)
perfect competition
c)
oligopoly
d)
monopoly
25.
The __ is the lowest rate of output at which a firm takes full advantage of economies of scale.
a)
minimum efficient scale
b)
barriers to entry
c)
deregulation
d)
market power
26.
__ attempts to prohibit efforts to monopolize markets in which competition is desirable.
a)
antitrust activity
b)
merge
c)
deregulation
d)
barriers to entry
27.
A(n) __ is the combination of two or more firms to form a single firm.
a)
merger
b)
deregulation
c)
monopolistic competition
d)
oligopoly
28.
___ reduces or eliminates government regulation.
a)
deregulation
b)
market power
c)
monopoly
d)
monopolistic competition
29.
A market structure is the organization of a industry mainly by the degree of
a)
Competition
b)
Success
c)
Costs
d)
Benefits
30.
The market structure with the most control over prices and as a result, the highest prices is:
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
31.
The market structure likely to have the lowest prices is:
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
32.
This market structure can act like a monopoly when the firms all set prices the same
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competitio
d)
Oligopoly
33.
In this market structure, products are similar but have some differences. These slight differences allow producers to have some control over price.
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
34.
This market structure has 3-4 firms who dominate 60-80% of the industry.
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly
35.
Products that are identical are called
a)
Cartels
b)
Commodities
c)
Collusions
d)
Capital
36.
In the 1950s in the United States, the car industry was dominated by GM, Ford and Chrysler. This is an example of:
a)
A monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
An oligopoly
37.
In the 1990s, AT&T controlled 80% of the phone industry and was the ONLY provider of long distance phone service. This is an example of
a)
A monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
38.
Beauty salons and clothing stores are likely
a)
Monopolies
b)
Monopolistic Competition
c)
Perfectly Competitive
d)
Oligopolies
39.
This is the most difficult market structure to enter based on the number of producers and high barriers to entry
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
40.
This is the easiest market structure to enter because of low barriers to entry and the number of producers.
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
41.
Uncle Booger has a special license to be the only producer of the Bumper Dumper. This type of legal monopoly is known as:
a)
A franchise
b)
A patent/copy right
c)
Natural monopoly
d)
Resource monopoly
42.
Rebels in Angola had this type of monopoly over diamonds because they controlled the mines
a)
Franchise
b)
Patent/Copy Right
c)
Natural Monopoly
d)
Resource monopoly
43.
This type of monopoly exists because it is efficient to allow one producer to be the only provider. Xcel energy being the sole provider of electricity in my neighborhood is an example of this.
a)
Franchise
b)
Patent/copy right
c)
Natural Monopoly
d)
Resource Monopoly
44.
This is an illegal act in which companies agree to set the price of their good or service the same.
a)
Commodity
b)
Commercializatio
c)
Barrier to entry
d)
Collusion
45.
Which of the following is NOT an example of non-price competition?
a)
Locatio
b)
Brand name/image/status
c)
Service level
d)
All of the above are examples of non-price competition
46.
Which of the following is a NEGATIVE externality?
a)
Polluition
b)
Coming to school sick
c)
Blasting loud music outside in the middle of the night
d)
All of the above
47.
Goods that are provided by the government (and paid for through taxation) are known as:
a)
Private goods
b)
Public Goods
c)
Cartels
d)
Commodities
48.
Police protection is an example of a _ good and apples are an example of a _ good.
a)
Public; Private
b)
Private; Public
c)
Public; Public
d)
Private; Private
49.
A person who does not pay for a good but benefits from it anyways is known as a
a)
Jerk
b)
Free rider
c)
Cartel
50.
A business owned and operated by an individual is known as a
a)
Partnership
b)
Sole Proprietorship
c)
Corporatio
d)
Franchise
51.
This is a legal entity, owned by stock holders.
a)
Partnership
b)
Sole Propriotorship
c)
Corporation
d)
Cooperative
52.
This is a business organization owned by two or more people. They share liability and profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporatio
d)
Non-profit
53.
This is a semi-independent business that pays fees to a parent company.
a)
Non-profit
b)
Cooperative
c)
Corporation
d)
Franchise
54.
This is a business organization that is operated by a group of individuals for their shared benefit.
a)
Partnership
b)
Cooperative
c)
Non-Profit
d)
Franchise
55.
This is a business organization that operates to benefit society.
a)
Corporation
b)
Franchise
c)
Partnership
d)
Non-profit
56.
Because decision making is shared, conflict can easily arise. This is a disadvantage of this type of business organization:
a)
Corporation
b)
Franchise
c)
Non-profit
d)
Partnership
57.
The largest disadvantage of this business organization is that you are solely responsibly for your business' failure.
a)
Franchise
b)
Sole Proprietorship
c)
Corporation
d)
Non-profit
58.
One disadvantage of this business organization is that there is a lot of paperwork and taxation.
a)
Sole proprietorship
b)
Corporations
c)
Partnership
59.
One benefit of this business organization is that because two people are working together, they bring different skills and talents.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
60.
An advantage of this business organization is there is a lot of potential for investment and growth.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
61.
Disadvantages include double taxation and more government regulation
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
62.
This type of business organization can be owned by two or more people who share unlimited liability for business debts
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
63.
The disadvantages of this business organization include unlimited liability, difficulty raising financial capital, difficulty attracting qualified employees, and having a limited life
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
64.
If you want to form this type of business organization, you will have to get permission from a state or national government. This can be costly and require a lawyer.
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
65.
Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership.
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
66.
In a general partnership,
a)
the business continues even if one partner dies
b)
partners must pay specific business taxes
c)
partners usually draw up articles of partnership
d)
partners are only responsible for debt equal to investment
67.
An advantage of a corporation is that
a)
owners pay fewer taxes than other forms of business
b)
the business is subject to little gov regulation
c)
owners have limited liability for debt
d)
owners have direct and immediate control of daily operations
68.
How is a corporation different from a sole proprietorship?
a)
Corporations are owned by only one person
b)
Corporations can sell stock to raise money for the business.
c)
Sole proprietorships have limited liability for the owners.
d)
Sole proprietorships require a legal charter to start the business.
69.
Guy and his brothers want to start a plumbing business together. What is an advantage of organizing the business as a partnership rather than a corporation?
a)
Partnerships can be started up quickly.
b)
Partnerships can issue stock to raise money.
c)
Partnerships have limited legal liability.
d)
Partnerships need a legal charter to begin.
70.
How are sole proprietorships and partnerships alike?
a)
Contracts are needed to start the businesses.
b)
Owners have complete control of the business.
c)
Owners have limited legal liability.
d)
The businesses are owned by one person.
71.
The term liability means which of the following?
a)
responsibility
b)
likelihood
c)
propensity
d)
capability
72.
Companies are classified into a market structure based on the which of the following characteristics?
a)
Competition
b)
Success
c)
Costs
d)
Benefits
73.
The market structure with the most control over prices and as a result, the highest prices is:
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
74.
The market structure likely to have the lowest prices is:
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
75.
This market structure can act like a monopoly when the if the few firms involved all set prices the same
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competitio
d)
Oligopoly
76.
This market structure has 3-4 firms who dominate 60-80% of the industry.
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly
77.
Products that are identical are called
a)
Cartels
b)
Commodities
c)
Collusions
d)
Capital
78.
In the 1950s in the United States, the car industry was dominated by GM, Ford and Chrysler. This is an example of:
a)
A monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
An oligopoly
79.
In the 1990s, AT&T controlled 80% of the phone industry and was the ONLY provider of long distance phone service. This is an example of
a)
A monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
80.
Beauty salons and clothing stores are likely
a)
Monopolies
b)
Monopolistic Competition
c)
Perfectly Competitive
d)
Oligopolies
81.
This is the easiest market structure to enter because of low barriers to entry and the number of producers.
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
82.
Uncle Booger has a special license to be the only producer of the Bumper Dumper. This type of legal monopoly is known as:
a)
A franchise
b)
A patent / copyright
c)
Natural monopoly
d)
Resource monopoly
83.
Which of the following is NOT an example of non-price competition?
a)
Location
b)
Brand name/image/status
c)
Service level
d)
All of the above are examples of non-price competition
84.
Which part of the economy includes all of the transactions between individuals, households, firms, or businesses?
a)
Economic Sector
b)
Public Sector
c)
Private Sector
d)
Sector 7-G
85.
What is the term used to describe a factor that prevents a firm from entering into the market?
a)
barrier to entry
b)
opportunity cost
c)
private property
d)
imperfect competition
86.
Which of the following is an example of nonprice competition?
a)
American Eagle raises the price of all of their jeans.
b)
Burger King adds items to their dollar menu.
c)
Wal-Mart has a sale on sugar.
d)
Nike designs a purple pair of Jordans.
87.
What are the names of the two ways in which the government influences the business cycle?
a)
Supply and Demand
b)
Monetary Policy and Fiscal Policy
c)
Surplus and Shortage
d)
Expansion and Contraction
88.
Who benefits the most from perfect competition?
a)
sellers
b)
producers
c)
consumers
d)
suppliers
89.
Which of the following is NOT a characteristic of perfect competition?
a)
Many buyers and sellers
b)
Sellers offer identical products
c)
Sellers can enter and exit the market freely
d)
There is control over prices
90.
The unemployment rate has decreased .9% in the last year, meaning that more individuals are either finding work or have given up looking for jobs.
Is this a microeconomic issue or macroeconomic?
Is this a microeconomic issue or macroeconomic?
a)
microeconomic
b)
macroeconomic
91.
The price of steel increases, and it now costs more to purchase a car. This is because auto manufacturers have had to raise their prices to make up for the increased cost of production.
Is this macroeconomic or microeconomic?
Is this macroeconomic or microeconomic?
a)
macroeconomic
b)
microeconomic
92.
What type of economic system does the United States exist on?
a)
Traditional
b)
Market
c)
Command
d)
Mixed
93.
A market structure is the organization of an industry based on the degree of
a)
Competition
b)
Success
c)
Costs
d)
Benefits
94.
This market structure is the only one that charges the price set by supply and demand
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
95.
This market structure can act like a monopoly if the major firms all set prices the same
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
96.
In this market structure, products are similar but have some differences. These slight differences allow producers to have some control over price.
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
97.
Uncle Bob has a special license to be the only producer of the Bumper Dumper. This type of legal monopoly is known as:
a)
A franchise
b)
A patent/copyright
c)
Natural monopoly
d)
Resource monopoly
98.
De Beers has this type of monopoly over diamonds because the company owns the majority of mines
a)
Franchise
b)
Patent/Copy Right
c)
Natural Monopoly
d)
Resource monopoly
99.
This type of monopoly exists because it is efficient to allow one producer to be the only provider. WE energies is the sole provider of electricity in Wisconsin and is an example of this.
a)
Franchise
b)
Patent/copy right
c)
Natural Monopoly
d)
Resource Monopoly
100.
A formal organization of firms in the same industry acting together to make decisions is a.
a)
Collusion
b)
Monopolistic Competition
c)
Cartel
d)
Monopoly
101.
This is an illegal act in which companies agree to set the price of their good or service the same.
a)
Commodity
b)
Commercialization
c)
Barrier to entry
d)
Collusion
102.
Which of the following is NOT an example of non-price competition?
a)
Store Location
b)
Brand name/image/status
c)
Service level
d)
All of the previous are examples of non-price competition
103.
All firm mergers must be approved by the US Secretary of State
a)
True
b)
False
104.
The automobile industry would be classified as a....
a)
Monopolistic Competition
b)
Undifferentiated Oligopoly
c)
Differentiated Oligopoly
d)
import/export exchange
105.
The Sherman Anti-Trust Act made it legal to form monopolies.
a)
True
b)
False
106.
The longest standing cartel that is still in operation is
a)
the Spud Cartel
b)
OPEC
c)
the Big 4 Auto firms
d)
the Steel Cartel
107.
A legal document protecting the inventor of a product or process is called a...
a)
Logo
b)
Articles of Incorporation
c)
Charter
d)
Patent
108.
All of the following are features of perfect competition EXCEPT
a)
many buyers and sellers
b)
differentiated products
c)
buyers that are fully informed about price, quality, and availability of products.
d)
easy entry into & exit from the industry
109.
How do monopolies harm consumers?
a)
They eliminate competition and allow for high prices
b)
They encourage competition, but increase prices
c)
They increase competition and lower prices
d)
They increase prices while increasing the quality of products
110.
As a result of economies of scale, as output expands:
a)
A)fixed costs are decreasing.
b)
B)average total costs are
decreasing.
decreasing.
c)
C)average total costs are constant.
d)
D)total costs are decreasing.
111.
When a major car company lowers its prices, other car makers will probably
a)
maintain existing prices
b)
raise their prices
c)
go out of business
d)
lower their prices
112.
Which of the following businesses is most likely to operate within a market structure of PURE COMPETITION?
a)
a tomato farm
b)
an office supply store
c)
an automobile manufacturer
d)
an Italian restaurant
113.
A clothing retailer attempts to sell more products by featuring Justin Bieber in its advertisements. This is an example of
a)
bad judgement
b)
economies of scale
c)
pure competition
d)
nonprice competition
114.
Which of these fictitious situations best illustrates the concept of collusion?
a)
Three major cereal companies secretly agree to charge higher prices for all boxes of cereal sold in the USA
b)
Three airline companies start a price war by cutting prices on all domestic flights by fifteen percent
c)
Two local stores start selling similar cookie designs during the holiday season
d)
One popular car manufacturer released a new feature on its SUV and its rival announced this feature would also be available on its SUV
115.
What is not a barrier of entry for an oligopoly?
a)
advertising costs
b)
start-up cost
c)
economies of scale
d)
nonprice competition
116.
The purpose of the government implementing and enforcing patents and copyrights is to
a)
generate greater tax revenues
b)
protect domestic producers against foreign competition
c)
limit anti-trust activity
d)
encourage innovation and ultimately economic growth
117.
A patent gives an inventor of a new product the sole right to make, use, or sell the item for
a)
7 years
b)
20 years
c)
25 years
d)
30 years
118.
Monopolies tend not to last due to all of the following except
a)
foreign competition
b)
de-regulation by the government
c)
anti-trust policy actions
d)
rising resource costs
119.
Which of the following is an example of predatory pricing?
a)
Walgreens saw that CVS was charging $0.25 more for milk and raised its prices in response.
b)
Walgreens dropped the prices of all its goods, taking a loss in profits, but eventually driving its competition out of business and then raised its prices back up
c)
Walgreens estimates its competitors will spend about $12m on advertising in 2016, so it decides to spend $18m
d)
None of the previous are an example
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