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Reid Economics 4th Form

Total questions: 15

Worksheet time: 21mins

Name
Class
Date
1.

Which of the following is NOT a Market Structure?

a)

Perfect Competition

b)

Oligopoly

c)

Monopoly

d)

Corporation

2.

Which market structure involves selling identical (same) products?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

3.
How many firms are there in a perfect competition?
a)
1
b)
2-5
c)
Many
4.
Why does no one firm dominate in a perfect competition?
a)
No firm wants to
b)
Each firm sells to different people
c)
Each firm produces so little of the total supply that they cannot influence prices
d)
One firm will eventually dominate and make it a monopoly
5.
How many firms are there in a monopoly?
a)
1
b)
2-5
c)
Many
6.

What prevents firms from entering a monopoly?

a)

Strong barriers to entry

b)

Technology

c)

Price

d)

Barriers to Travel

7.
An industry that is dominated by a few large firms is 
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
8.
Businesses can "Collude" or work together to set prices
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
9.

A market structure where firms produce similar product which is differentiated through branding and with easy entry into the market

a)

Perfect Competition

b)

Monopolistic Competition

c)

Monopoly

10.
Choose the example that goes best with an oligopoly.
a)
apples
b)
cell phone providers
c)
utilities
d)
clothing
11.
Which is NOT a characteristic of a monopoly?
a)
Seller sets the market price
b)
Entry into the market is easy
c)
Firm sells a unique product
d)
One seller
12.
Which is NOT a characteristic of perfect competition?
a)
difficult entry into the market
b)
many sellers
c)
identical product
d)
no control over price  
13.
Which best describes a public good?
a)
A good provided by the government 
b)
A good purchased by individuals
c)
A good that exists only in a free market
d)
A good that produces no externalites
14.

A market failure is best described as

a)

The idea that market forces of supply and demand always provide the maximum benefit for society

b)

The inability of the market to allocate resources efficiently to satisfy society’s wants

c)

The concept that a decision made by one party can have negative effects on another party

d)

The concept that a decision made by one party can have positive effects on another party

15.

Which market does not fail?

a)

Perfectly Competitive Market

b)

Monopoly

c)

Oligopoly

d)

Company