Applied Economics - Market Structures Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

According to Republic Act 8293, can the government hold copyright for its work?

No, the government cannot hold copyright for any of its work.

Yes, the government automatically holds the copyright.

No copyright shall subsist in any work of the Government of the Philippines (correct)

The government can only hold copyright with the author's permission.

Borrowed materials included in a module are owned by the publisher and authors of the module.

False (B)

What condition may a government agency impose for the exploitation of its work for profit?

the payment of royalties

Prior approval from the government agency is necessary for exploitation of work for ______.

profit Signup and view all the answers

Match the following roles with the person in the Senior HS Module Development Team:

Author = Raynie E.Navarro Language Editor = Janina Mae V.Malibiran Content Evaluator = Charina A.Morales, EdD Illustrator = Raynie E.Navarro Signup and view all the answers

Who is the Schools Division Superintendent?

Romeo M.Alip, PhD, CESO V (B) Signup and view all the answers

Leonor Magtolis Briones is the Undersecretary of the Department of Education.

False (B) Signup and view all the answers

Who is responsible for Senior HS?

Danilo S.Caysido (C) Signup and view all the answers

Which of the following is a key characteristic of monopolistic competition?

Numerous small firms compete, selling similar but differentiated products. (C) Signup and view all the answers

In a monopolistically competitive market, firms are price takers.

False (B) Signup and view all the answers

Name three factors that firms use to differentiate their products in a monopolistically competitive market.

Style, brand name, location, packaging, advertisement, and pricing strategies. Signup and view all the answers

In monopolistic competition, there is easy and into the market.

entry/exit Signup and view all the answers

Match the following companies with their respective industry in a Monopolistic Competition market:

Cap'n Crunch = Breakfast Cereals McDonald's = Fast Food Nike = Athletic Footwear Signup and view all the answers

What gives firms in a monopolistically competitive market the power to charge higher prices?

Product differentiation (C) Signup and view all the answers

In a monopolistically competitive market, consumers have no preference for one product over another.

False (B) Signup and view all the answers

What is the ultimate goal of firms in a monopolistically competitive market?

Maximize profit. Signup and view all the answers

Which market structure is characterized by many sellers offering identical products?

Perfect Competition (A) Signup and view all the answers

Which of the following is a characteristic of a perfectly competitive market?

Few barriers to entry and exit. (C) Signup and view all the answers

In a perfectly competitive market, individual sellers have the ability to set prices above the market equilibrium.

False (B) Signup and view all the answers

In a perfectly competitive market, individual producers can significantly influence the market price.

False (B) Signup and view all the answers

In the milk tea shop example, why can't sellers individually raise their prices without losing customers?

because consumers will tend to buy on other stalls since they are also selling the same item at a cheaper price. Signup and view all the answers

A market structure where producers offer products that are distinguished from each other but not perfect substitutes is called ______ competition.

monopolistic Signup and view all the answers

What type of knowledge do both producers and consumers possess in a perfectly competitive market?

perfect knowledge Signup and view all the answers

Match the market structure with its description:

Perfect Competition = Many sellers, identical products Monopolistic Competition = Many sellers, differentiated products Monopoly = Single seller Oligopoly = Few sellers Signup and view all the answers

In perfectly competitive markets, companies manufacture ______ products that are not branded.

identical Signup and view all the answers

Match the following concepts with their descriptions in a perfectly competitive market:

Profit Maximization = Goal of producers Utility Maximization = Goal of consumers Uniform Prices = Prices depend on market demand and supply Easy entry and exit = Few barriers exist for new firms or firms leaving the market Signup and view all the answers

Cynthia and Vilma opening similar milk tea shops with different styles and packaging is an example of:

Monopolistic Competition (D) Signup and view all the answers

Which of the following scenarios best describes a perfectly competitive market?

Several farmers sell nearly identical corn at the same price. (C) Signup and view all the answers

Edward owning the only pizza shop in town and reducing production to increase prices is an example of perfect competition.

False (B) Signup and view all the answers

Which of the following is a defining characteristic of perfect competition?

Many buyers and sellers (C) Signup and view all the answers

Risk-taking is very important for the entrepreneur in a perfectly competitive market.

False (B) Signup and view all the answers

What factor determines prices in a perfectly competitive market?

demand and supply Signup and view all the answers

Which of the following industries is an example of an oligopoly?

Automobile (D) Signup and view all the answers

In an oligopoly, firms are price takers, meaning they have no control over the prices of their products.

False (B) Signup and view all the answers

What is a significant barrier to entry in an oligopoly market?

High barriers to entry Signup and view all the answers

An ________ is a market structure dominated by a few firms supplying similar or differentiated products.

oligopoly Signup and view all the answers

Match the characteristic with the market struture:

Many producers, same products and prices = Perfect Competition Few companies, control over price = Oligopoly Signup and view all the answers

What is the primary goal of entrepreneurs in an oligopoly?

To maximize profits. (D) Signup and view all the answers

In perfect competition, an individual seller can easily increase the price of their product without losing customers.

False (B) Signup and view all the answers

What is one way a new business might try to attract customers in an oligopoly market?

Setting prices lower than competitors (A) Signup and view all the answers

What market structure is characterized by many companies selling similar products that can substitute each other?

Perfect competition (A) Signup and view all the answers

In a monopolistic competition, consumers cannot prefer one product over another.

False (B) Signup and view all the answers

What term describes a market structure where several companies sell slightly different products?

Monopolistic competition Signup and view all the answers

In a market structure dominated by a single seller, this is known as a _____ market.

monopoly Signup and view all the answers

In oligopolies, market participants are classified as price:

Both (C) Signup and view all the answers

Match the following terms with their definitions:

Perfect competition = Many buyers and sellers with identical products Monopoly = Single seller in a market Monopolistic competition = Differentiated products from different sellers Oligopoly = A market dominated by a few large sellers Signup and view all the answers

Oligopolies consist of many small firms each with equal market power.

False (B) Signup and view all the answers

What is the main reason for the emergence of oligopolies?

High barriers to entry and exit Signup and view all the answers

Flashcards

Market Structures

Different organizational forms in which businesses operate.

Perfect Competition

A market structure with many firms and identical products.