PE Chp 2 Market

What is the definition of a market?

• a) A place where goods are manufactured

• b) A platform for buyers and sellers to exchange specific goods or services
  

• c) A storage facility for agricultural produce
  

• d) A location for political gatherings

  
  

Which of the following is NOT true about markets?

• a) Markets must always be physical meeting places
  

• b) Markets facilitate exchanges between buyers and sellers
  

• c) Markets can involve both goods and services
  

• d) Markets provide a medium for interaction

What is the primary purpose of a market?

• a) To manufacture goods
  

• b) To store agricultural produce
  

• c) To facilitate exchanges between buyers and sellers
  

• d) To organize political events

In a perfect competition market, there is a:

• a) Small number of firms of buyers and sellers
  

• b) Large number of firms of buyers and sellers
  

• c) Medium number of firms of buyers and sellers
  

• d) Variable number of firms of buyers and sellers

What type of product is typically found in a perfect competition market?

• a) Unique and differentiated
  

• b) Customized
  

• c) Homogeneous/Identical
  

• d) Limited edition

In perfect competition, firms are often:

• a) Price setters
  

• b) Price influencers
  

• c) Price takers
  

• d) Price negotiators

Which of the following is a characteristic of perfect competition regarding entry and exit?

• a) Restricted entry and exit
  

• b) Controlled entry and exit
  

• c) Freedom of entry and exit
  

• d) Limited entry and exit

In perfect competition, sellers and buyers:

• a) Have limited knowledge of the market
  

• b) Have perfect knowledge of the market
  

• c) Have partial knowledge of the market
  

• d) Have no knowledge of the market

What type of market structure is characterized by a large number of firms selling similar but differentiated products?

• a) Perfect competition
  

• b) Monopolistic competition
  

• c) Oligopoly
  

• d) Monopoly

What types of market structures fall under imperfect competition?

• a) Monopoly and oligopoly
  

• b) Monopolistic competition and oligopoly
  

• c) Perfect competition and monopoly
  

• 1. d) Monopoly and perfect competition