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Chapter 7 - Market Structures

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

Market structure characterized by a single producer in a market

a)

Oligopoly

b)

Purely Competitive

c)

Monopoly

d)

Monopolistic competition

2.

Market structure in which only a few large sellers dominate and have ability to affect prices in an industry

a)

Oligopoly

b)

Purely Competitive

c)

Monopoly

d)

Monopolistic competition

3.

Market structure having all conditions of perfect competition except for identical products

a)

Oligopoly

b)

Purely Competitive

c)

Monopoly

d)

Monopolistic competition

4.

Theoretical market structure that requires three conditions: very large numbers, identical products, and freedom of entry and exit

a)

Oligopoly

b)

Perfectly Competitive

c)

Monopoly

d)

Monopolistic competition

5.

Process in which a lender reclaims housing property due to a lack of payment by the borrower

a)

foreclosure

b)

reposession

c)

redemption

d)

vengence

6.

Perfect competition and monopoly _________

a)

are the same

b)

are almost the same

c)

are opposites

d)

should not be compared

7.

When a factory pollutes a river, the resulting water pollution is an example of a ________.

a)

technological monopoly

b)

public good

c)

negative externality

d)

neutral spillover effect

8.

Which is an example of a public good?

a)

a rock band

b)

a car

c)

national defense

d)

bread

9.

Which industry would fall into the oligopoly market structure?

a)

soft drinks

b)

fast food

c)

retail stores

d)

energy companies

10.

Which of the following is a form of product differentiation?

a)

Flame grilling a burger

b)

Adding a "secret" sauce

c)

Using a sesame seed bun

d)

All of these

11.

Because firms in a perfectly competitive market have to sell at equilibrium, they are _________.

a)

price takers

b)

price searchers

c)

price givers

d)

price setters

12.

Which of the following is not a type of legal monopoly?

a)

Natural monopoly

b)

Geographic monopoly

c)

Government monopoly

d)

Standard Oil

13.

How are people's inventions protected?

a)

Copyrights

b)

Public franchise

c)

Patents

d)

Seals

14.

Which of the following would be considered an "unfair" business method?

a)

Price-cutting

b)

Discounts

c)

Competitive pricing

d)

Product differentiation

15.

How does the government try and prevent negative externalities?

a)

Taxation

b)

Subsidies

c)

Shutting down those businesses

d)

Putting people in jail

16.

A lone convenience store in a small town is an example of what?

a)

Natural monopoly

b)

Geographic monopoly

c)

Government monopoly

d)

Technological monopoly

17.

In order for something to be considered a public good, two things must be true: the good must be non-rivalry and what?

a)

non exclusionary

b)

free

c)

non taxable

d)

non interferring

18.

Which market structure does Game Theory apply to?

a)

Monopoly

b)

Oligopoly

c)

Pure Competition

d)

Monopolistic Competition

19.

Why are cartels nonbinding in the U.S.A.?

a)

They're illegal

b)

They're dangerous

c)

They're not used

d)

They're too competitive

20.

Which of the following is NOT one of the reasons why markets fail?

a)

Resources that can't or won't move

b)

Not enough competition

c)

Not enough information

d)

Too much competition

21.

Which of the following is an example of a positive externality?

a)

Air pollution from factories

b)

Noise from construction

c)

Education benefits to society

d)

Traffic congestion

22.

What role does government play in correcting market failures?

a)

No role, as market failures correct themselves.

b)

Providing public goods and services.

c)

Only regulating common access resources.

d)

Regulating externalities, providing public goods, and managing common resources.

23.

A ‘sugar tax’ is designed to address which of the following types of market failures?

a)

Negative externalities in production

b)

Public Goods

c)

Positive externalities in consumption

d)

Negative externalities in consumption

24.

Competition forces businesses to search for new ways to satisfy customers' wants and needs.

a)

True

b)

False

25.

Which of following is an example of a free-rider?

a)

A tax-payer using the new nicely paved road

b)

A group member who did their part gets a good grade on a project

c)

Someone watching a fireworks show without providing a donation for it

d)

An individual eating a candy bar they paid for

26.

A dog park that becomes unusable because of people not picking up after their pets and assuming someone else will clean it up is an example of what phenomenon?

a)

Free-rider problem

b)

Tragedy of the Commons

c)

Positive externality

d)

Negative externality