Test Bank For Principles of Macroeconomics by John Sayre

Test Bank For Principles of Macroeconomics by John Sayre

Monopoly

Multiple Choice Questions
1. What is a monopoly?
A. A market in which a single firm is a sole producer.
B. An illegal consortium of firms acting as one.
C. A market where there is a sole buyer of a product.
D. A conglomerate where many different products are produced by one firm.

Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 10-01 Explain what monopolies are; how they come into existence; and why they must reduce their prices to sell more.
Topic: 10-01 What are Monopolies and How do They Come into Existence?

2. Which of the following statements regarding the definition of a monopoly market is incorrect?
A. Whether a certain market is regarded as a monopoly depends upon the definition of the demand.
B. Whether a certain market is regarded as a monopoly depends upon the definition of the market.
C. Whether a certain market is regarded as a monopoly depends upon the definition of the product.
D. Whether a certain market is regarded as a monopoly depends upon the definition of substitute goods.

Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 10-01 Explain what monopolies are; how they come into existence; and why they must reduce their prices to sell more.
Topic: 10-01 What are Monopolies and How do They Come into Existence?

3. Which of the following markets most closely resembles a monopoly?
A. The automobile market.
B. The diamond market.
C. The bond market.
D. The steel market.

Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 10-01 Explain what monopolies are; how they come into existence; and why they must reduce their prices to sell more.
Topic: 10-01 What are Monopolies and How do They Come into Existence?

4. All of the following except one are examples of monopolies in Canada. Which is the exception?
A. CBC Television.
B. Manitoba Hydro.
C. Rogers Cablevision.
D. Montreal Subway system.

Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 10-01 Explain what monopolies are; how they come into existence; and why they must reduce their prices to sell more.
Topic: 10-01 What are Monopolies and How do They Come into Existence?

5. What are barriers to entry?
A. Toll highways which make transportation costs very high.
B. Tariffs imposed on imported goods.
C. Obstacles that make it difficult for new participants to enter an industry.
D. Quotas imposed on imported goods.

Accessibility: Keyboard Navigation
Blooms: Remember
Blooms: Understand
Difficulty: Easy
Learning Objective: 10-01 Explain what monopolies are; how they come into existence; and why they must reduce their prices to sell more.
Topic: 10-01 What are Monopolies and How do They Come into Existence?