Economic Systems and Market Structures CDS Questions

CDS Economy

Economic Systems and Market Structures MCQ Questions


7.
What is the 'break-even point' for a firm?
A.
Point where total cost equals total revenue
B.
Point of maximum profit
C.
Point of minimum cost
D.
Point where marginal cost equals price
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ANSWER :
A. Point where total cost equals total revenue
8.
Which of these is NOT a barrier to entry in a monopoly?
A.
Economies of scale
B.
Patent protection
C.
Government regulation
D.
Perfect information
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ANSWER :
D. Perfect information
9.
What type of economic system is most common in the world today?
A.
Traditional economy
B.
Command economy
C.
Market economy
D.
Mixed economy
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ANSWER :
D. Mixed economy
10.
What is a cartel?
A.
A government-regulated price mechanism
B.
A group of firms colluding to control prices and output
C.
A type of monopoly
D.
A central planning authority in a command economy
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ANSWER :
B. A group of firms colluding to control prices and output
11.
In a perfectly competitive market, firms are _____.
A.
Price makers
B.
Price takers
C.
Monopoly holders
D.
Cost setters
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ANSWER :
B. Price takers
12.
In a monopoly, there are no close _____.
A.
Markets
B.
Sellers
C.
Competitors
D.
Substitutes
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ANSWER :
D. Substitutes