Market Structures Quiz

What are market structures characterized by in an economy?

• The degree of competition in a market

• The number of consumers

• The type of government

• The geographical location

Which of the following is NOT a determinant of market structures?

• Nature of the goods and products

• Number of sellers

• Type of currency used

• Economies of scale

How many basic types of market structures are discussed in the document?

• Two

• Three

• Four

• Five

Which of the following is one of the four basic types of market structures?

• Perfect Competition

• Mixed Economy

• Command Economy

• Traditional Economy

What is the purpose of understanding the different types of market structures?

• To understand the principles behind the classification of market structures

• To determine the best type of currency to use

• To decide the geographical location of markets

• To identify the best type of government

Which of the following is NOT an assumption of perfect competition?

• The products on the market are homogeneous.

• All firms have the motive of profit maximization.

• There is no concept of consumer preference.

In a perfect competition market structure, what role do firms play in terms of pricing?

• Price setters

• Price negotiators

• Price regulators

Which type of market structure is described as having a large number of buyers and sellers with slightly differentiated products?

• Perfect competition

• Monopoly

• Oligopoly

In monopolistic competition, why can sellers charge a marginally higher price?

• Because they have homogeneous products

• Because there are no buyers

• Because there are no sellers

Which of the following is a characteristic of monopolistic competition?

• Homogeneous products

• No consumer preference

• Single seller