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Market Structures 2

Total questions: 13

Worksheet time: 10mins

Name
Class
Date
1.

When trying to start a business and enter a certain product market, there are fees and licenses to apply for and equipment to purchase. These are all__

a)

consumer products

b)

factors of production

c)

barriers to entry

d)

supply & demand

2.

The effort by sellers to agree to secretly set production levels or prices is called

a)

cartel

b)

antitrust

c)

price leadership

d)

collusion

3.

The situation in which sellers undercut each other’s prices in an attempt to gain market share is called:

a)

interdependent pricing

b)

price war

c)

price leadership

d)

price competition

4.

In economics and in the law, the term "trust" refers to ___

a)

business owners that believe in the law

b)

banks that loan funds to businesses

c)

wealthy people who inherited their fortures

d)

businesses that have become monopolies

5.

The US Gov't passed "antitrust" laws in an effort to eliminate the ability for businesses to __

a)

create new techonologies

b)

enlarge profits

c)

become a monopoly

d)

compete for market share

6.

Huge monopolies dominated the American marketplace in the late 1800s. This lead the US Gov't to set (______) laws to break them up.

a)

bankruptcy

b)

anti-trust

c)

anti-competition

d)

prohibition

7.

Businesses and inventors are able to apply for a ___ in order to protect themselves from competitors copying their technology

a)

trademark

b)

copyright

c)

trust

d)

patent

8.

In Monopolistic Competition you would find that purchases are made generally based on __

a)

supply/demand

b)

brand loyalty

c)

price

d)

price of substitute products

9.

The ways in which the competitors try to gain new customers in a Monopolistic Competition is by __

a)

showing their product is superior

b)

using famous spokespeople to endorse their product

c)

better prices

d)

getting the gov't to put competitors out of business

10.

An Oligopoly is when there are

a)

few producers who control the market

b)

only one producer

c)

an open market with plenty of producers

d)

a market that hasn't yet been discovered

11.

Match the Market Structure with its characteristics..

a)

OLIGOPOLY

1.

Market is dominated by a few producers

b)

MONOPOLY

2.

Market is controlled by one producers

c)

MONOPOLISITIC COMPETITION

3.

Producers compete to show superiority

d)

PERFECT COMPETITION

4.

apples to apples

12.

Drop the characteristics and examples into the correct Market Structure

Categorize the following

one single producer

public utilities

consumers have brand loyalty

spokespeople endorse products

athletic shoes

a few producers dominate the market

an "apples to apples" comparison

agricultural products

cable/satellite providers

perfect competition
monopolistic competition
oligopoly
monopoly
13.

Match the following

a)

Barriers to entry

1.

fees, licenses, permits required

b)

Price War

2.

cut prices to undercut the competition

c)

Collusion

3.

producers secretly conspire to set price

d)

Cartel

4.

producers openly conspire to set prices

e)

Price Leadership

5.

"big boys" set the price & others follow