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WorksheetsWeek 8
Total questions: 20
Worksheet time: 3600secs
What is a monopoly?
A firm that produces a good or service with no close substitute.
A firm that produces a new good or service.
A firm that efficiently produces goods and services.
A firm that is larger in size than other firms.
Which of these is true about monopolies?
Monopolies often compete with other powerful firms.
Power lies in the hands of monopolies which can charge higher prices without losing sales.
Monopolies have the power to force people to buy whatever they want.
You can own Park Place and the Boardwalk.
Which of these is the polar opposite of a monopoly?
Cartel
Duopoly
Oligopoly
Perfect Competition
Which of these does not lead to a form of a monopoly?
Legal restrictions
Economies of Scale
Control of Resources
Perfect Competition
Basically, no matter what causes the monopoly to exist, it all can be summarized as _____________ .
low barriers to entry
high barriers to entry
low barriers to exit
high barriers to exit
A monopolistic company may want to ________________.
keep prices low to avoid regulation
keep prices high to avoid regulation
keep prices high to encourage competition
keep prices low to encourage competition
A de jure monopoly is another way of saying a ____________.
legal monopoly
by chance monopoly
natural monopoly
monopoly occurred by controlling resources
Patents are temporary monopolies given by government to
inventors when they create a new product.
creative artists when they write a new song.
authors when they write a new book or poem.
designers when they create a unique logo.
A copyright gives the holder a(n)
exclusive right to copy and sell.
exclusive right to buy in a marketplace.
temporary ability to write freely without censorship.
protection against those who came up with original ideas.
Which of these is not an example of an intellectual property right?
patent
copyright
trademark
factory or farm
Which market structure includes dominance by 3 to 6 firms?
monopoly
duopoly
oligopoly
perfect competition
The soft drink (soda) market is an example of a(n) ______________.
oligoply
monopoly
duopoly
perfect competition
The music industry is an example of a(n) _________________.
monopoly
duopoly
oligopoly
perfect competition
Cartelization occurs when ___________ .
an oligopoly no longer wishes to compete, so they collude
a monopoly splits apart and becomes a competitive oligopoly
perfect competition causes sellers to lose power
workers take over the means of production
What is the primary purpose of a cartel?
Split territories, raise prices, make profits.
Strength through violence.
Organizing illegally to run a criminal enterprise.
Competition for the benefit of economic freedom.
If a cartel member "cheats" the cartel, what are they doing?
They are lowering prices to compete.
They are selling fewer products.
They are selling more products.
They are maintaining order over their territory.
Which is a characteristic of perfect competition?
many buyers and few sellers.
few buyers and few sellers.
many buyers and one seller.
many buyers and many sellers.
What is a commodity?
a product that is the same no matter who makes it.
a product that is inherently valuable.
a product that isn't really valuable.
a product that can differ depending on who makes it.
In perfect competition,
buyers are fully informed about price, quality, and availability.
buyers are not informed at all about price, quality, and availability.
buyers are fully informed about price and availability, but not quality.
buyers are fully informed about quality only, but not price and availability.
In perfect competition, there are _____________.
high barriers to entry
high barriers to exit
low barriers to entry
low barriers to exit
