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Intro to Economics- Sections 4 and 5

Total questions: 31

Worksheet time: 1hrs 4mins

Name
Class
Date
1.
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
2.

What prevents firms from entering a monopoly?

a)

Barriers to Entry

b)

Technology

c)

Price

d)

Barriers to Travel

3.
Businesses can "Collude" or work together to set prices
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
4.
Choose the example that goes best with an oligopoly.
a)
apples
b)
cell phone providers
c)
utilities
d)
clothing
5.

Which of the following industries is an example of a monopoly?

a)

utilities/water

b)

department stores

c)

auto industry

d)

commercial airlines

6.

A market that has a few sellers of basically the same goods.

a)

Perfect Competition

b)

Pure Monopoly

c)

Monopolistic Competition

d)

Oligopoly

7.

Public utilities are an example.

a)

Perfect Competition

b)

Natural Monopoly

c)

Monopolistic Competition

d)

Oligopoly

8.

In this market, the producer is the least responsive to buyers' needs and wants.

a)

Perfect Competition

b)

Pure Monopoly

c)

Monopolistic Competition

d)

Oligopoly

9.

Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies have a little control over the price and there are relatively low barriers to entry.

a)

perfect competition

b)

monopolistic competition

c)

oligopoly

d)

monopoly

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.
How many firms are there in a perfect competition?
a)
1
b)
2-5
c)
Many
12.
An industry that is dominated by a few large firms is 
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
13.
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
14.

Which of the following Market structures has the most sellers?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

15.

Which of these market structures has the least control over price in the marketplace?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

16.

In this market structure there is little of no difference between the product no matter what company produces it?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

17.

If a person gets a patent on a product that product is in which market structure?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

18.


An unincorporated business owned by a single person, which may or may not have employees, is an

example of a(n)

a)

Entrepreneurship

b)

Partnership

c)

Sole Proprietorship

d)

Corporation

19.

I found these white socks at 10 different stands at the flea market. Why type of market system is being represented?

a)

Monopoly

b)

Oligopoly

c)

Monopolistic Competition

d)

Perfect competition

20.

Heather is seeking to start a business. She is concerned with having enough money to start the business, even after taking a loan from the bank. She is willing to take on partners but she still wants to have control over most aspects of the company. Which form of business organization would be best to set up?

a)

Corporation

b)

Partnership

c)

Sole Proprietorship

d)

Franchise

21.


In which type of business organization do the owners have the least input and decision-making on the day to day operations?

a)

Monopoly

b)

Corporation

c)

Oligopoly

d)

Partnership

22.

The way a company or firm is structured is called

a)

sole proprietorship

b)

business

c)

business franchise

d)

business organization

23.

A firm that is owned by two or more individuals, where profits are split

a)

sole proprietorship

b)

partnership

c)

franchise

d)

corporation

24.

A business organization that is owned and managed by one individual is called a(n)

a)

sole proprietorship

b)

franshise

c)

corporation

d)

partnership

25.

The advantages of this business type are that the owner is their own boss and gets to keep all the profits.

a)

partnership

b)

cooperation

c)

sole proprietorship

d)

franchise

26.

Disadvantages for this type of business include: the owner pays for everything, hard to get money to start from the bank, the owner might lack skills & unlimited liability.

a)

sole proprietorship

b)

franchise

c)

corporation

d)

partnership

27.

What is a business owned by stockholders/investors but operated by others?

a)

sole proprietorship

b)

partnership

c)

corporation

d)

franchise

28.

What is the concept of opportunity cost?

a)

The value of the next best alternative

b)

The benefits of a decision

c)

The direct monetary costs

d)

The time and effort required

29.

Define specialization.

a)

The act of broadening one's knowledge in various areas of study.

b)

The process of becoming a generalist in multiple fields.

c)

The process of focusing on a specific area or field of study or expertise.

d)

The act of focusing on a specific area or field of study or expertise.

30.

What is absolute advantage?

a)

Ability to produce a good or service at a lower cost or with higher efficiency than others.

b)

Ability to produce a good or service with no cost or efficiency advantage over others.

c)

Ability to produce a good or service with the same cost and efficiency as others.

d)

Ability to produce a good or service at a higher cost or with lower efficiency than others.

31.

How does opportunity cost relate to comparative advantage?

a)

Opportunity cost is only relevant in the context of production, not trade.

b)

Comparative advantage is based on absolute advantage, not opportunity cost.

c)

Opportunity cost is the basis for determining comparative advantage.

d)

Opportunity cost has no relation to comparative advantage.