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Unit Two Lesson Seven Economics

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A spillover or side effect of production or consumption

a)

Monopoly

b)

Oligopoly

c)

Externality

d)

Market effect

2.

A situation in which the market fails to allocate resources efficiently

a)

Market failure

b)

Perfect Competition

c)

Market structure

d)

Capital failure

3.

The organization of a market, based mainly on the degree of competition

a)

Market failure

b)

Land resource

c)

Market structure

d)

Oligopoly

4.

A market structure in which many producers supply similar but varied products

a)

Price floor

b)

Market competition

c)

Market controls

d)

Monopolistic Competition

5.

A market structure in which a single producer supplies a unique product that has no close substitutes

a)

Monopoly

b)

Perfect Competition

c)

Oligopoly

d)

Price controls

6.

A market structure in which a few firms dominate the market and produce similar or identical goods

a)

Oligopoly

b)

Revenue

c)

Monopoly

d)

Rationality

7.

A market structure in which many producers supply an identical product and no single producer can influence its price

a)

Monopolistic competition

b)

Market competition

c)

Blue Market

d)

Perfect Competition

8.

Goods and services that are used collectively and that no one can be excluded from using

a)

Private goods

b)

Public goods

c)

Externalities

d)

Market goods

9.

The most competitive market structure is

a)

perfect competition.

b)

Oligopoly

c)

monopolistic competition

d)

Monopoly

10.

Which is not one of the four main characteristics of market structure?

a)

number of producers

b)

similarity of products

c)

Ease of entry

d)

Brand loyalty

11.

Nearly perfect markets are beneficial because producers are as efficient as possible and

a)

producers can sell at any price they choose

b)

the quantity of goods produced is restricted.

c)

consumers do not pay more for a product than it is worth

d)

the price of a product bears no relationship to its production costs.

12.

The most extreme version of imperfect competition is

a)

Black Market

b)

Monopoly

c)

Oligopoly

d)

monopolistic competition.

13.

A monopoly can best be summed up as

a)

few producers, similar products

b)

many producers, identical products

c)

many producers, similar but varied products

d)

one producer, a unique product

14.

What is a contract issued by a government entity that gives a firm a sole right to provide a good or service

a)

a public franchise

b)

a copyright

c)

a license

d)

a patent

15.

If the four top producers together supply more than 60 percent of the total output.

a)

Example of Monopoly

b)

Example of Price Controls

c)

Example of Oligopoly

d)

Example of Rationality

16.

Which of the following is a modern cartel?

a)

Coca-Cola, Pepsi, and Dr Pepper Snapple Group

b)

Organization of Petroleum Exporting Countries

c)

Microsoft

d)

Standard Oil Company

17.

Which market structure do we encounter most often in our daily lives?

a)

perfect competition

b)

Oligopolies

c)

monopolistic competition

d)

No competition

18.

Goods and services are not allocated in the most efficient way is an example of

a)

Market goods

b)

Perfect Competition

c)

Market Failure

d)

Capitalism

19.

A student graduates from college and starts a profitable new business She creates jobs for three workers Those jobs are

a)

a negative externality

b)

a sign of market efficiency

c)

a form of nonprice competition

d)

a positive externality of her education

20.

Public goods are

a)

nonexcludable and nonrival in consumption.

b)

excludable and rival in consumption.

c)

excludable and nonrival in consumption

d)

nonexcludable and rival in consumption