Lesson 4.1.5.1

4.1.5.1 Market structures Quiz: AQA Economics, Unit 1

20 questions

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Lesson 4.1.5.1, Market structures: 20 multiple choice questions for the AQA Economics (7136), Unit 1: Individuals, firms, markets and market failure, written with Revision Ninja.

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The 20 questions

  1. Which market structure is at the opposite end of the competition spectrum from perfect competition?

    • Oligopoly
    • Duopoly
    • Monopolistic competition
    • Pure monopoly
  2. Which of the following is a key factor used to distinguish between market structures?

    • Price elasticity
    • Marginal cost
    • Ease of entry
    • Consumer surplus
  3. What is the degree of product differentiation for firms operating in perfect competition?

    • None
    • High
    • Moderate
    • Very high
  4. Which market structure features a single seller, high barriers to entry, and no close substitutes?

    • Monopolistic competition
    • Pure monopoly
    • Oligopoly
    • Perfect competition
  5. Unlike perfect competition, firms in monopolistic competition sell what type of products?

    • Identical products
    • Standardised products
    • Homogeneous products
    • Differentiated products
  6. What effect do low barriers to entry have on the market power of existing firms?

    • Reduces market power
    • Has no effect
    • Maximises market power
    • Increases market power
  7. A market has three firms with shares of 80%, 10% and 10%. The three-firm concentration ratio (CR3) is:

    • 100%
    • 80%
    • 90%
    • 20%
  8. Five firms have market shares of 30%, 25%, 20%, 15% and 10%. The three-firm concentration ratio is:

    • 85%
    • 90%
    • 65%
    • 75%
  9. Which market structure lies at the opposite end of the spectrum from perfect competition?

    • Oligopoly
    • Monopolistic competition
    • Duopoly
    • Pure monopoly
  10. Which market structure is characterised by identical products, many buyers and sellers, and free entry?

    • Oligopoly
    • Monopolistic competition
    • Perfect competition
    • Monopoly
  11. Which feature distinguishes an oligopoly from a monopolistically competitive market structure?

    • Product differentiation
    • Interdependence
    • Many small sellers
    • Low entry barriers
  12. Which two market structures are characterised by containing a large number of competing firms?

    • Perfect and oligopoly
    • Oligopoly and monopoly
    • Perfect and monopolistic
    • Monopoly and duopoly
  13. An increase in a market's five-firm concentration ratio indicates which change in structure?

    • Greater competition
    • Lower entry barriers
    • Lower concentration
    • Higher concentration
  14. A market has 10 firms of equal size. What are CR1 and CR5?

    • CR1 = 5% and CR5 = 25%
    • CR1 = 10% and CR5 = 50%
    • CR1 = 20% and CR5 = 100%
    • CR1 = 50% and CR5 = 10%
  15. Why are real-world market structures often difficult to classify into rigid theoretical models?

    • Government regulation
    • Identical costs
    • Perfect information
    • Blended features
  16. Which of the following acts as a structural barrier to entry in a market?

    • Homogeneous goods
    • Perfect information
    • Free mobility
    • Economies of scale
  17. Compared to perfect competition, why might a firm with monopoly power reduce allocative efficiency?

    • Maximises output
    • Restricts output
    • Lowers prices
    • Eliminates profits
  18. Which market structure features many small firms selling differentiated products with low entry barriers?

    • Perfect competition
    • Oligopoly
    • Pure monopoly
    • Monopolistic competition
  19. What does a concentration ratio measure in an industry?

    • Total market revenue
    • Number of consumers
    • Average production cost
    • Combined market share
  20. What distinguishes a pure monopoly from a monopolistically competitive firm regarding products?

    • Identical market share
    • No close substitutes
    • Homogeneous products
    • Perfect information

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