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WorksheetsMarket Structures
Total questions: 50
Worksheet time: 2hrs 59mins
Name
Class
Date
1.
In perfect competition, the product is differentiated
a)
True
b)
False
2.
In monopolistic competition there are many buyers and sellers
a)
True
b)
False
3.
Non-price competition is the use of ads, giveaways, or promotions to win customers
a)
True
b)
False
4.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
5.
In which market structure is there the MOST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
6.
Which type of market structures has many many producers(companies) that sell identical products and has no control over price?
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
7.
Which type of market structures has very few producers(companies) that control the majority of the market?
Hint: think of the soda market
Hint: think of the soda market
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
8.
The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)
a)
monopoly
b)
oligopoly
c)
perfect competition
d)
monopolistic competition
9.
Which scenario is an example of a monopoly?
a)
A local water company is the sole provider of water for a small town.
b)
A dry cleaner specializes in environmentally friendly cleaning methods.
c)
A farmer produces green beans for sale at a farmer's market.
d)
A small number of cereal companies produce most of the cereal on the market.
10.
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
11.
This market structure has 3-4 firms who dominate 70-80% of the industry.
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly
12.
List the four market structures in order from least competitive to most competitive.
a)
Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
b)
Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
c)
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
d)
Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly
13.
What is not part of perfect competition?
a)
buyer/ seller are well informed
b)
sellers cannot enter/ exit market easily
c)
low prices
d)
few barriers of entry
14.
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.
15.
Perfect competition is characterized by
a)
a large number of sellers and buyers.
b)
diverse products.
c)
sellers acting together to set prices.
d)
uninformed buyers and sellers.
16.
The effort by sellers to secretly set production levels or prices is called
a)
collusion
b)
price leadership
c)
compliance
d)
nonprice competition
17.
ABC, CBS, FOX and NBC are a great example of this market structure
a)
Perfect Competition
b)
Imperfect Competition
c)
Oligopoly
d)
Monopoly
18.
How many firms are there in a perfect competition?
a)
1
b)
2-5
c)
Many
19.
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
20.
Factors that make it difficult for new firms to enter a market are called
a)
Barriers to entry
b)
Factors of production
c)
Limited supply
d)
Monopolistic Outlook
21.
How many firms are there in a monopoly?
a)
1
b)
2-5
c)
Many
22.
An industry that is dominated by a few large firms is
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
23.
Businesses can "Collude" or work together to set prices
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
24.
A market structure characterized by firms producing similar product with easy entry into the market
a)
Perfect Competition
b)
Monopolistic Competition
c)
Monopoly
25.
Choose the example that goes best with an oligopoly.
a)
apples
b)
cell phone providers
c)
utilities
d)
clothing
26.
Which of the following industries is an example of a monopoly?
a)
utilities/water
b)
department stores
c)
auto industry
d)
commercial airlines
27.
The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)
a)
monopoly
b)
oligopoly
c)
perfect competition
d)
monopolistic competition
28.
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
29.
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
30.
A market that has a few sellers of basically the same goods.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
31.
Firms in this kind of market produce goods that are very close substitutes.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
32.
If Nike and Adidas merge, it would be a _____________ merger
a)
horizontal
b)
vertical
c)
insane
d)
ladder
33.
An oil driller, oil refinery, and gas company merge.... this is a ________________ merger
a)
horizontal
b)
vertical
c)
inappropriate
d)
monopolistic
34.
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
35.
Airlines are examples of _________________.
a)
purely / perfectly competitive markets.
b)
monopolies.
c)
oligopolies.
d)
monopolistic competition.
36.
Monopolies can control the price of a product because ______.
a)
They are evil.
b)
They are illegal.
c)
The have a unique product.
d)
The government supports them.
37.
When the supply of a product or service goes up and the demand stays the same the Price will typically do what?
a)
rise
b)
fall
c)
stay the same
d)
Consumer
38.
When the demand for a product or service is higher than the supply this causes what?
a)
shortage
b)
consumer
c)
surplus
d)
equilibrium
39.
a person or company that makes, grows, or supplies goods to sell is called the?
a)
damand
b)
price
c)
producer
d)
shortage
40.
The desire or willingness a consumer has to purchase a good or a service is called?
a)
shortage
b)
supply
c)
price
d)
demand
41.
The amount of goods or services available is called?
a)
supply
b)
demand
c)
producer
d)
consumer
42.
An individual or group who purchases goods.
a)
producer
b)
consumer
c)
goods
d)
services
43.
When there is a shortage the price will usually?
a)
rise
b)
fall
c)
remain the same
d)
equilibrium
44.
Mr Tonkli goes to the ticket booth to buy tickets for a Cavs game. Mr. Tonkli is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available?
a)
The arena forgot to print enough tickets.
b)
The supply of tickets was greater than the demand.
c)
The arena charged too much money for each ticket.
d)
The demand for tickets was greater than the supply.
45.
Which situation is most likely to lead to the lowest prices?
a)
There is only one producer making the good.
b)
Businesses secretly agree to share their profits.
c)
Competition between businesses is prohibited.
d)
Several producers compete to sell goods to the public.
46.
When companies compete in a market economy, what is usually the result?
a)
Consumers are able to buy goods for the best available price.
b)
People pay much higher prices for goods.
c)
There are frequent shortages of goods on the market.
d)
Producers refuse to sell some of their products.
47.
Local stores sell a particular pair of sneakers for $80. A picture of a basketball star Lebron James wearing these sneakers appears in all the local Ohio newspapers. The next day, sales for sneakers start to rise.
What is likely to happen to the price of the sneakers over the next several weeks?
What is likely to happen to the price of the sneakers over the next several weeks?
a)
People will refuse to buy these sneakers.
b)
The price for the sneakers will not change.
c)
The price will fall as people learn Lebron James wears them.
d)
The price of the sneakers will rise as more people want similar sneakers.
48.
How does competition affect producers in a market economy?
a)
They generally agree to share resources equally.
b)
They improve the quality of their goods to attract buyers.
c)
They look to the government to assign resources.
d)
They ration their goods equally among consumers.
49.
Read the following situation to determine what the outcome would be:
A new type of television set uses 3-D images. many stores will have large quantities of the older style televisions. What will happen to the price of these older televisions?
A new type of television set uses 3-D images. many stores will have large quantities of the older style televisions. What will happen to the price of these older televisions?
a)
The price will remain the same.
b)
The price will rise.
c)
The price will fall.
50.
Read the following situation to answer the question:
The yeast needed to to make whole wheat bread rises sharply in price. What will happen to the price of whole wheat bread?
The yeast needed to to make whole wheat bread rises sharply in price. What will happen to the price of whole wheat bread?
a)
The price will rise.
b)
The price will stay the same.
c)
The price will fall.
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