WorksheetsMarket structure Quiz
Total questions: 45
Worksheet time: 4hrs 45mins
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.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
4.
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
5.
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
6.
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
7.
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.
8.
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
9.
This market structure has 3-4 firms who dominate 70-80% of the industry.
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly
10.
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
11.
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
12.
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.
13.
In perfect competition, the product is differentiated
a)
True
b)
False
14.
In monopolistic competition there are many buyers and sellers
a)
True
b)
False
15.
Non-price competition is the use of ads, giveaways, or promotions to win customers
a)
True
b)
False
16.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
17.
In which market structure is there the MOST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
18.
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
19.
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
20.
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
21.
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.
22.
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
23.
This market structure has 3-4 firms who dominate 70-80% of the industry.
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly
24.
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
25.
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
26.
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.
27.
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.
28.
The effort by sellers to secretly set production levels or prices is called
a)
collusion
b)
price leadership
c)
compliance
d)
nonprice competition
29.
ABC, CBS, FOX and NBC are a great example of this market structure
a)
Perfect Competition
b)
Imperfect Competition
c)
Oligopoly
d)
Monopoly
30.
The effort by sellers to secretly set production levels or prices is called
a)
collusion
b)
price leadership
c)
compliance
d)
nonprice competition
31.
ABC, CBS, FOX and NBC are a great example of this market structure
a)
Perfect Competition
b)
Imperfect Competition
c)
Oligopoly
d)
Monopoly
32.
How many firms are there in a perfect competition?
a)
1
b)
2-5
c)
Many
33.
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
34.
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
35.
How many firms are there in a monopoly?
a)
1
b)
2-5
c)
Many
36.
An industry that is dominated by a few large firms is
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
37.
Businesses can "Collude" or work together to set prices
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
38.
Choose the example that goes best with an oligopoly.
a)
apples
b)
cell phone providers
c)
utilities
d)
clothing
39.
Which of the following industries is an example of a monopoly?
a)
utilities/water
b)
department stores
c)
auto industry
d)
commercial airlines
40.
Firms in this kind of market produce goods that are very close substitutes.
a)
Perfect Competition
b)
Pure Monopoly
c)
Monopolistic Competition
d)
Oligopoly
41.
Public utilities are an example.
a)
Perfect Competition
b)
Natural Monopoly
c)
Monopolistic Competition
d)
Oligopoly
42.
The market for milk is an example of perfect competition. Why?
a)
Sellers offer a nearly identical product
b)
Anyone can start a dairy farm or leave the dairy business at any time
c)
Many people buy and sell milk
d)
All of the above
43.
The town of Utopia has three gas stations. The owners of these gas stations make decisions together about when to raise and lower gas prices. It would be difficult for another gas station to enter this market. Which market structure best describes the market for gas in Utopia?
a)
Perfect competition
b)
Monopolistic competition
c)
Oligopoly
d)
Monopoly
44.
A new firm recently arrived in Utopia offering much higher internet speeds than existing providers. The other providers have gone out of business because so many Utopian residents have switched to the new provider. What will most likely happen to the price of internet service in Utopia?
a)
The price will decrease because the new provider wants to keep its customers happy.
b)
The price will increase because there is only one internet provider in Utopia.
c)
The price will decrease because there is only internet provider in Utopia.
d)
There will be no change in price.
45.
If a major car company such as Ford lowers their prices, what are other car companies likely to do?
a)
Raise their prices
b)
Go out of business
c)
Maintain their current prices
d)
Lower their prices
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