Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
   1. Market structures - self-test questions
   2. Market structure - short answer
   3. Price as a signal - short answer
   4. Demand - self-test questions
   5. Demand - short answer
   6. Supply - short answer
   7. Demand and supply - short answer
   8. Markets and prices - self-test questions
   9. Market equilibrium - numerical
   10. Demand and supply - data response
   11. High Food Prices
   12. Oil - the rise and rise
   13. New Zealand dairy prices increase
   14. Orange juice will soon be a luxury
   15. The true face of global warming
   16. How much is a 2p worth? Actually 3p
   17. Labour mobility
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

Market structures - self-test questions

1

Market structures Match the following descriptions with the appropriate market structure? a) An industry with significant barriers to entry and a single supplier Choose... Perfect competition Monopolistic competition Oligopoly Monopoly b) A highly concentrated market with just a few interdependent firms Choose... Perfect competition Monopolistic competition Oligopoly Monopoly c) A highly competitive market with slightly differentiated products Choose... Perfect competition Monopolistic competition Oligopoly Monopoly d) A highly competitive market where firms are price takers Choose... Perfect competition Monopolistic competition Oligopoly Monopoly Yes, that's correct. Well done.No, that's not quite right. Try again.Your answer has been saved.

2

Market structures Which of the following is the most competitive market structure? a) Perfect competition b) Monopolistic competition c) Oligopoly d) Monopoly Please select an answerYes, well done.No, this is fairly competitive but not the most competitive.No, this is where a few firms only dominate the market.No, this is the least competitive.

3

Market structures Which of the following is the least competitive market structure? a) Perfect competition b) Monopolistic competition c) Oligopoly d) Monopoly Please select an answerNo, this is the most competitive.No, this is fairly competitive.No, this is where a few firms only dominate the market.Yes, well done.

4

Market structures Which of the following is NOT a feature of monopolistic competition? a) Numerous sellers b) Product differentiation c) Numerous buyers d) Homogenous products Please select an answerNo, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.No, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.No, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.Yes, this is not a feature - products are assumed to be differentiated. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.

5

Market structures In which form of market structure would price be the key factor when competing? a) Monopoly b) Oligopoly c) Monopolistic competition d) Perfect competition Please select an answerNo, there will be NO competition for the firm here.No, the few firms in this industry can also compete in non-price competition.No, firms will also compete through product differentiation. Yes, all products appear the same which means price becomes a crucial factor in competition. In perfect competition, there are many firms selling homogenous products. Prices are driven down to the same level.