Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following is true for a perfectly competitive industry?

   A.

   There are many firms, each with a large market share.

   B.

   The firms in the industry produce a standardized product.

   C.

   There are barriers to entry.

   D.

   There are barriers to exit.

   E.

   There are a few firms, each with a small market share.

   Which of the following is true for a perfectly competitive industry?

2. Question

   Which of the following is true for a monopoly?

   
   

   
   

   1. There is only one firm.

      
      
   
   

   2. The firm produces a product with many close substitutes.

      
      
   
   

   3. The industry has free entry and exit.

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   Which of the following is true for a monopoly?

3. Question

   Which of the following is true for an oligopoly?

   
   

   
   

   1. There are a few firms, each with a large market share.

      
      
   
   

   2. The firms in the industry are interdependent.

      
      
   
   

   3. The industry experiences diseconomies of scale.

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   Which of the following is true for an oligopoly?

4. Question

   Which of the following is true for a monopolistically competitive industry?

   
   

   
   

   1. There are many firms, each with a small market share.

      
      
   
   

   2. The firms in the industry produce a standardized product.

      
      
   
   

   3. Firms are price-takers.

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   Which of the following is true for a monopolistically competitive industry?

5. Question

   Which of the following is an example of differentiated products?

   A.

   Coke and Pepsi

   B.

   automobiles and bicycles

   C.

   trucks and gasoline

   D.

   stocks and bonds

   E.

   gold and silver

   Which of the following is an example of differentiated products?