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Market Structures Quiz

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

under perfect competition what sets the equilibrium price in the market?

a)

nonprice competition

b)

supply and demand

c)

the government

d)

a monopoly

2.

pure competition and monopoly are...

a)

the same

b)

almost the same

c)

should not be compared

d)

opposites

3.

which of the following factors contribute to market failure?

a)

adequate competition

b)

knowledge of prices and opportunities

c)

mobility of resources

d)

inadequate competition

4.

which market structure is defined by a single producer?

a)

pure competition

b)

monopolistic competition

c)

oligopoly

d)

monopoly

5.

which of the following do economists use to classify markets?

a)

number of firms

b)

size of firms

c)

type of product

d)

all of these

6.

if a shoe company pays a professional athlete to wear shoes it makes, it is an example of:

a)

imperfect competition

b)

product differentiation

c)

nonprice competition

d)

all of these are correct

7.

which of the following is a benefit of natural monopolies?

a)

economies of scale

b)

the Federal Trade Commission Act

c)

cease and desist order

d)

foreclosure

8.

the government does not try to eliminate all monopolies. Why?

a)

it would be impossible

b)

not all monopolies are bad

c)

the government itself is a monopoly

d)

the aren't any monopolies anymore

9.

A plant in a small town closes, leaving hundred of people unemployed. There are jobs available at the similar plant in another state, but many of the unemployed workers are unwilling to move or cannot afford to move. An economist might use this as an example to:

a)

describe what happens where there is not enough competition

b)

define resource immobility

c)

define a public good

d)

explain an externality

10.

what condition is present in perfect competition but missing in monopolistic competition?

a)

marginal analysis

b)

identical products

c)

freedom of entry and exit

d)

very large number of buyers and sellers