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Review
For Chapter 6 Sec 1 and
Chapter 7
Question 1
What is monopolistic competition?
A. very few companies selling identical
products
B. Many companies selling similar but
not identical products
C. One company selling several
different products under different
names
D. One company selling the identical
product under different names
Question 1
What is monopolistic competition?
A. very few companies selling identical
products
B. Many companies selling similar but
not identical products
C. One company selling several
different products under different
names
D. One company selling the identical
product under different names
Question 2
What is the definition of an
oligopoly?
A. Eight to ten firms producing 60-70%
of the output
B. One firm producing 95% of the
output
C. Two to four firms producing 70-80%
of the output
D. Eight to ten firms producing 90% of
the output
Question 2
What is the definition of an
oligopoly?
A. Eight to ten firms producing 60-70%
of the output
B. One firm producing 95% of the
output
C. Two to four firms producing 70-80%
of the output
D. Eight to ten firms producing 90% of
the output
Question 3
How much control over price do
companies in a perfectly
competitive market have?
A. None
B. Very little
C. Some
D. Total Control
Question 3
How much control over price do
companies in a perfectly
competitive market have?
A. None
B. Very little
C. Some
D. Total Control
Question 4
When is a buyer NOT willing to spend a lot of
time and energy researching the market?
A.
B.
C.
D.
When prices vary but quality is the
same
When the savings to be made are
small
When there are many identical
products available
When buying a large quantity of goods
Question 4
When is a buyer NOT willing to spend a lot of
time and energy researching the market?
A.
B.
C.
D.
When prices vary but quality is the
same
When the savings to be made are
small
When there are many identical
products available
When buying a large quantity of goods
Question 5
Rent control is a type of
A.
B.
C.
D.
Price Floor
Rationing
Price Ceiling
Surplus
Question 5
Rent control is a type of
A.
B.
C.
D.
Price Floor
Rationing
Price Ceiling
Surplus
Question 6
How does a natural monopoly
function?
A. Imperfect competition makes it
difficult for firms to do business
B. The government supplies all buyers
with the product
C. A single firm supplies all the output
D. A few firms are in perfect
competition
Question 6
How does a natural monopoly
function?
A. Imperfect competition makes it
difficult for firms to do business
B. The government supplies all buyers
with the product
C. A single firm supplies all the output
D. A few firms are in perfect
competition
Question 7
When buyers will purchase exactly
as much as the sellers are willing
to sell, what is the condition that
has been reached?
A. Excess Demand
B. Equilibrium
C. Price Floor
D. Supply and Demand
Question 7
When buyers will purchase exactly
as much as the sellers are willing
to sell, what is the condition that
has been reached?
A. Excess Demand
B. Equilibrium
C. Price Floor
D. Supply and Demand
Question 8
What was the chief effect of the Sherman
Antitrust Act?
A. The federal government repealed regulations
that controlled the airline and trucking
industries.
B. John D. Rockefeller formed the Standard Oil
Trust as a protected natural monopoly.
C. The federal government won the power to
prevent monopolies and mergers that interfered
with trade between states.
D. Microsoft required personal computer
manufacturers to include its web browser with
the Microsoft Windows operating system.
Question 8
What was the chief effect of the Sherman
Antitrust Act?
A. The federal government repealed regulations
that controlled the airline and trucking
industries.
B. John D. Rockefeller formed the Standard Oil
Trust as a protected natural monopoly.
C. The federal government won the power to
prevent monopolies and mergers that interfered
with trade between states.
D. Microsoft required personal computer
manufacturers to include its web browser with
the Microsoft Windows operating system.
Question 9
Which of the following is NOT a
condition for perfect
competition?
A.
B.
C.
D.
Sellers offer a wide variety of products
Many buyers and sellers participate in the
market
Buyers and sellers are well informed
about products
Sellers are able to enter and exit the
market freely
Question 9
Which of the following is NOT a
condition for perfect
competition?
A.
B.
C.
D.
Sellers offer a wide variety of products
Many buyers and sellers participate in the
market
Buyers and sellers are well informed
about products
Sellers are able to enter and exit the
market freely
Question 10
What word goes with this
definition?
Situation in which quantity demanded
is greater than quantity supplied
Question 10
Shortage
Question 11
What word goes with this
definition?
A minimum price for a good or service
Question 11
Price Floor
Question 12
What word goes with this
definition?
A market dominated by a single seller
Question 12
Monopoly
Question 13
What word goes with this
definition?
A product that is considered the same
no matter who produces it
Question 13
Commodity
Question 14
What word goes with this
definition?
When quantity supplied and quantity
demanded are not the same in a
market
Question 14
Disequilibrium
Question 15
What word goes with this
definition?
Situation in which quantity supplied is
greater than quantity demanded
Question 15
Surplus
Question 16
What word goes with this
definition?
The smallest amount, by law, that can
be paid to a worker for an hour of
labor
Question 16
Minimum Wage
Question 17
What word goes with this
definition?
A market structure in which a large
number of firms all produce the
same product
Question 17
Perfect Competition
Question 18
What word goes with this
definition?
Any factor that makes it difficult for a
new firm to become part of a market
Question 18
Barrier to Entry
Question 19
What word goes with this
definition?
A license that gives the inventor of a
new product the exclusive right to
sell it for a certain period of time
Question 19
Patent
Other Test Items
 Numbers
graph
 Number
20-23 are short answer with a
24 and 25 are short answer
questions:
What are the advantages and
disadvantages of the minimum wage
for workers?
How do the four types of market
structures differ?