Economics

Question 1

1A market with many buyers and sellers of an identical product, and free entry, is

Easy

A. duopoly B. oligopoly C. perfect competition D. monopoly

Question 2

2Product differentiation is a feature of

Easy

A. pure monopoly only B. perfect competition C. barter D. monopolistic competition

Question 3

3A cartel such as OPEC is an example of

Hard

A. perfect competition B. collusive oligopoly C. monopsony D. pure monopoly

Question 4

4A monopsony is a market with

Medium

A. many buyers and sellers B. a single seller C. two sellers D. a single buyer

Question 5

5A monopolist can control either the price or the

Medium

A. consumers' income B. cost of rivals C. demand curve D. quantity sold

Question 6

6In perfect competition, the firm's demand curve is

Easy

A. vertical B. downward sloping C. horizontal (perfectly elastic) D. kinked

Question 7

7A natural monopoly arises when

Hard

A. there are many sellers B. the government bans trade C. economies of scale make one firm most efficient D. demand is zero

Question 8

8A market dominated by a few large firms is

Easy

A. oligopoly B. duopsony C. monopoly D. perfect competition

Question 9

9In the long run, a firm in monopolistic competition earns

Hard

A. supernormal profit B. no revenue C. losses D. normal profit

Question 10

10In monopolistic competition, firms compete mainly through

Easy

A. government control B. a single seller C. product differentiation and branding D. identical products