Economic Principles in Competitive Industries Quiz

Test your knowledge on demand, perfect competition, monopoly, oligopoly, and more. 12 questions on economic principles in competitive industries.

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In economics, what is the law of demand?

As the price of a good increases, the quantity demanded increases.

As the price of a good decreases, the quantity demanded decreases.

As the price of a good increases, the quantity demanded decreases.

As the price of a good decreases, the quantity demanded increases.

What does 'Ceteris Paribus' mean in economics?

All else being equal

Demand and supply

Marginal utility

Price elasticity

Which of the following is NOT a characteristic of perfect competition?

Many buyers and sellers

Identical products

Limited information

Free entry and exit

What is the 'Marginal Revenue' in economics?

The revenue from the last unit sold

The total revenue divided by the quantity sold

The revenue from selling one more unit

The average revenue per unit sold

What is a 'Monopoly' in economics?

A market structure with many sellers and buyers

A market structure with only one seller and many buyers

A market structure with only one buyer and many sellers

A market structure with few sellers and many buyers

Which of the following is NOT a barrier to entry in a monopoly market?

Economies of scale

Government regulation

Product differentiation

Control over essential resources

What is 'Price Discrimination' in economics?

Selling a product at different prices based on cost differences

Charging different prices to different customers for the same product

Setting a fixed price for all customers

Selling a product at a price below its cost

Which of the following statements best describes the concept of 'Elasticity of Supply'?

It measures how consumers respond to a change in price.

It measures the responsiveness of quantity supplied to a change in price.

It measures the responsiveness of demand to a change in income.

It measures the responsiveness of quantity demanded to a change in price.

What does 'Profit Maximization' mean for a firm in economics?

Maximizing revenue

Maximizing output

Maximizing costs

Maximizing the difference between total revenue and total cost

#10

What is 'Oligopoly' in economics?

A market structure with many sellers and few buyers

A market structure with only one seller and many buyers

A market structure with only a few sellers, each offering a similar or identical product

A market structure with a single buyer and many sellers

#11

What is 'Deadweight Loss'?

The loss in economic surplus resulting from the misallocation of resources

The loss in total revenue due to a decrease in demand

The loss in profit due to increased competition

The loss in consumer surplus due to a decrease in supply

#12

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

Identical products

Many buyers and sellers

Barriers to entry