Which of the following best describes a monopolistic market structure?

Many small firms offering differentiated products

What would happen if there was an increase in the amount of suppliers in a market?

Decrease equilibrium price, increase equilibrium quantity

Which of the following is an outcome of a peak in the business cycle?

Increased production of goods and services

Which of the following best represents the law of supply

Increase in price results in increase in quantity supplied

Which of the following is a definition of economies of scale?

reduced costs per unit that arise from increased production

Which of the following best defines a public good?

Not provided by private business, so the government provides

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Markets- Preliminary Economics

10 termsStudBud Administration310 plays

Demand, supply, market equilibrium, elasticity and competition

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Questions 10

Answers

1
Which of the following best describes a monopolistic market structure?
One supplier in the market with control over prices
Many small firms offering differentiated products
dominated by a few large sellers, possibly anti-competitive
Many competitors all offering the same product at same price
2
What is represented by the diagram?
Price floor
Price ceiling
Excess demand
Increase in supply
3
What would happen if there was an increase in the amount of suppliers in a market?
Government implements a subsidy
Demand curve shifts to the left
Decrease equilibrium price, increase equilibrium quantity
Decrease equilibrium price, decrease equilibrium quantity
4
Which of the following is an outcome of a peak in the business cycle?
Higher levels of unemployment
Reduced inflation
Increased production of goods and services
Lower levels of disposable income
5
What is shown in the diagram?
Relatively elastic supply
Perfectly elastic demand
Relatively inelastic demand
Perfectly inelastic supply
6
Which of the following best represents the law of supply
Increase in price results in decrease in quantity supplied
Increase in price results in rise in quantity demanded
Increase in price results in increase in quantity supplied
Drop in price leads to increase in quantity demanded
7
Which of the following is a definition of economies of scale?
Long Run average cost curve
the optimum output quantity on the LRAC
increased cost per unit from increasing production
reduced costs per unit that arise from increased production
8
Which of the following goods has relatively elastic demand?
Overseas flights
Beer
Toilet paper
Manly ferry tickets
9
What is the problem caused by price ceilings?
Disequilibrium, shortage
Disequilibrium, excess supply
Disequilibrium, price too high
Disequilibrium, quantity too low
10
Which of the following best defines a public good?
Art, sports, museums and parks
Quantity provided is too low, so government subsidises them
Not provided by private business, so the government provides
Public education

Markets- Preliminary Economics Flashcards | StudBud