MCQ Questions
Q.1.
_____________is the term used to describe the amount of control or influence that consumers have on a market.
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    cell phone carriers.
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    Sovereignty
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    Monopolistic
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    Choices are driven by price when goods are identical.
Q.2.
Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication?
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    Technological monopoly
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    cell phone carriers.
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    Monopolistic
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    sell identical items.
Q.3.
_____________is the type of competition that occurs in a competitive market without identical producers.
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    Sovereignty
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    cell phone carriers.
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    Monopolistic
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    monopolists set their own price.
Q.4.
If consumer sovereignty is considered greatest in a system of pure competition, why is sovereignty still limited?
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    There are no substitutes.
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    cell phone carriers.
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    Costs of starting a competing business are too high.
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    Choices are driven by price when goods are identical.
Q.5.
The market for which item generally involves pure competition?
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    corn
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    a few.
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    There are no substitutes.
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    monopolists set their own price.
Q.6.
In the United States, which type of industry is often considered part of an oligopoly?
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    sell identical items.
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    There are no substitutes.
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    Technological monopoly
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    cell phone carriers.
Q.7.
Why is the automobile industry considered an oligopoly?
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    Few barriers to market entry exist.
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    It has significant barriers to entry.It depends on brand loyalty and image to generate sales.It is dominated by a few key players.
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    High entry costs prevent new producers from entering the market.
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    Costs of starting a competing business are too high.
Q.8.
Why is competition limited in an oligopoly?
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    sell identical items.
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    High entry costs prevent new producers from entering the market.
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    It has significant barriers to entry.It depends on brand loyalty and image to generate sales.It is dominated by a few key players.
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    Costs of starting a competing business are too high.
Q.9.
Which aspect of monopolistic competition gives consumers more choice?
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    There are no substitutes.
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    Costs of starting a competing business are too high.
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    monopolists set their own price.
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    Few barriers to market entry exist.
Q.10.
When an oligopoly exists, how many producers dominate the market?
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    Few barriers to market entry exist.
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    a few.
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    corn
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    There are no substitutes.