Market Structures: Test Questions and Answers

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TEST - MARKET STRUCTURES - TEST

Multiple Choice

This monopoly occurs when a firm develops new technology that changes the way goods are produced or creates an entirely new product.
a. geographic b. natural c. government d. technological

2. A monopoly owned & operated by any level of government:
a. geographic b. natural c. government d. technological

3. Exists when a single firm controls the total production or sale of a product. a. oligopoly b. monopolistic competition c. perfect competition d. pure monopoly

4. This monopoly occurs when a firm is the only producer or seller of a product in a specific location. a. geographic b. natural c. government d. technological

5. This monopoly occurs in an industry where competition is (unnatural) inconvenient, impractical, and unworkable.
a. geographic b. natural c. government d. technological

6. Intended to provide consumers with information on price, quality and special features of specific products.
a. informative advertising b. competitive advertising c. economies of scale d. pure oligopoly e. differentiated oligopoly

7. Exists when a few producers dominate the production of similar(but differentiated) goods. a. informative advertising b. competitive advertising c. economies of scale d. differentiated oligopoly e. pure oligopoly

8. Tries to persuade consumers that the product being advertised is better than substitute goods.
a. informative advertising b. competitive advertising c. economies of scale d. pure oligopoly e. differentiated oligopoly

9. Exists when firms are large enough to take advantage of mass production techniques. a. informative advertising b. competitive advertising c. economies of scale d. pure oligopoly e. differentiated oligopoly

10. Exists when a few producers dominate the production of an identical product. a. informative advertising b. competitive advertising c. economies of scale d. pure oligopoly e. differentiated oligopoly

11. Advertising the brand name or special features of a product, rather than the price, is an example of __________ competition.
a. non-price b. differentiation c. imperfect d. trusts e. perfect

12. __________ competition is a market (usually of differentiated products) where at least one seller is big enough to influence price.
a. non-price b. differentiation c. imperfect d. trusts e. perfect

13. In product _________, sellers emphasize the differences among competing products in order to increase sales.
a. non-price b. differentiation c. imperfect d. trusts e. perfect

14. Huge monopolies called ________ were created by industries in the late 1800s, eventually leading to the passage of legislation designed to monitor and regulate big business, prevent monopolies from forming, and break up existing monopolies. a. non-price b. differentiation c. imperfect d. trusts e. perfect

15. ________ competition is a market where sellers and buyers are so large (homogeneous[identical] products), that no seller can control price. a. non-price b. differentiation c. imperfect d. trusts e. perfect

16. Economists use the term ________ structure to describe how competitive specific industries are.
a. copyright b. patent c. price d. market e. collusion

17. In oligopolies, ________ leadership often originates with the largest firm in an industry, which offers its new product at a certain price, hoping that the competing firms will set similar prices for their products. a. copyright b. patent c. price d. market e. collusion

18. A ________ gives authors, composers, and artists exclusive rights to publish, duplicate, perform, display, or sell...
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