Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following is a form of product differentiation?

   
   

   
   

   1. style or type

      
      
   
   

   2. location

      
      
   
   

   3. quality

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   Which of the following is a form of product differentiation?

2. Question

   In which of the following market structures will individual firms advertise?

   
   

   
   

   1. perfect competition

      
      
   
   

   2. oligopoly

      
      
   
   

   3. monopolistic competition

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   II and III only

   E.

   I, II, and III

   In which of the following market structures will individual firms advertise?

3. Question

   Advertising is an attempt to affect which of the following?

   A.

   consumer tastes and preferences

   B.

   consumer income

   C.

   the price of complements

   D.

   the price of substitutes

   E.

   input prices

   Advertising is an attempt to affect which of the following?

4. Question

   Brand names generally serve to

   A.

   waste resources.

   B.

   decrease firm profits.

   C.

   confuse consumers.

   D.

   decrease information.

   E.

   signal quality.

   Brand names generally serve to

5. Question

   Which of the following is true of advertising expenditures in monopolistic competition? Monopolistic competitors

   A.

   will not advertise.

   B.

   use only informational advertising.

   C.

   always waste resources on advertising.

   D.

   attempt to create popular brand names.

   E.

   earn long-run profits through advertising.

   Which of the following is true of advertising expenditures in monopolistic competition? Monopolistic competitors