Econ 202: Practice Exam Quiz!

24 Questions | By Homegurl081990 | Updated: Mar 21, 2022 | Attempts: 735

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Can you identify with Econ 202? Econ is shortform for economics. With this quiz, you must be aware of a market situation in which a few large firms are called, what is an oligopolistic market, the two major types of government regulation, and the first anti-trust law in the United States. This quiz will help you practice for the exam. Give it a shot.

Questions and Answers

1.

A market situation in which there are a few large firms is called
- A.
  
  Monopolistic competition
- B.
  
  Monopoly
- C.
  
  Oligopoly
- D.
  
  Imperfect competition
2.

In an oligopolistic market, each firm
- A.
  
  Faces a perfectly elastic demand function
- B.
  
  Produces at minimum average cost in the long run
- C.
  
  Has a constant marginal cost
- D.
  
  Must consider the reaction of rival firms when making a pricing or ouptput decision
3.

An oligopoly is a market situation in which:
- A.
  
  All the sellers act independently of others
- B.
  
  There is a single firm producing several varieties of a product
- C.
  
  There are very few sellers and they recognize their strategic dependence on one another
- D.
  
  There are many firms producing differentiated products
4.

The most common reason for the existence of oligopolies is:
- A.
  
  Diseconomies of scale
- B.
  
  Economies of scale
- C.
  
  Ease of entry
- D.
  
  Advertising
5.

Monopolies and oligopolies both erect barriers to entry through the use of:
- A.
  
  Advertising
- B.
  
  Price cutting
- C.
  
  Franchising
- D.
  
  Patents
6.

Suppose an industry has total sales of $25 million per year. The two largest firms have sales of $6 million each, the third-largest firm has sales of $2million, and the fourth largest firm has sales of $1 million. The four-firm concentration ratio for this industry is
- A.
  
  36 percent
- B.
  
  60 percent
- C.
  
  25 percent
- D.
  
  50 percent
7.

Within a game theory model, if a change in decision-making raises corporation A's profits by $50 and lowers corporation B's profits by $50, the game is a
- A.
  
  Positive-sum game
- B.
  
  Zero-sum game
- C.
  
  Cooperative game
- D.
  
  Negative-sum game
8.

The two basic types of government regulation are:
- A.
  
  Economic regulation and industry regulation
- B.
  
  Regulation of natural monopolies and regulation of cartels
- C.
  
  Social regulation and labor law
- D.
  
  Social regulation and economic regulation
9.

Which type of regulation applies to all firms in the economy, as opposed to only covering specific industries?
- A.
  
  Social regulation
- B.
  
  Economic regulation
- C.
  
  Statutory regulation
- D.
  
  Rate regulation
10.

Which type of regulation applies to all firms in the economy, as opposed to only covering specific industries?
- A.
  
  Statutory regulation
- B.
  
  Rate regulation
- C.
  
  Economic regulation
- D.
  
  Social regulation
11.

The first antitrust law in the United States was the:
- A.
  
  Clayton Act
- B.
  
  Robinson-Patman Act
- C.
  
  FTC Act
- D.
  
  Sherman Act
12.

The primary antitrust statute in the United States is the:
- A.
  
  NLRA of 1935
- B.
  
  Sherman Antitrust Act of 1890
- C.
  
  SEC Act of 1933
- D.
  
  Federal Reserve Act of 1913
13.

Which of the following would most likely promote competitive pricing of products?
- A.
  
  Clayton Act
- B.
  
  Wheeler-Lea Act
- C.
  
  Robinson-Patman Act
- D.
  
  Federal Trade Commission Act
14.

The Federal Trade Commission regulates which of the following?
- A.
  
  Financial markets
- B.
  
  The banking industry
- C.
  
  Trade with third world countries
- D.
  
  Unfair trade practices by businesses
15.

The Federal Trade Commission Act was designed to:
- A.
  
  Prohibit bundling
- B.
  
  Limit company profits from foreign sales
- C.
  
  Prohibit cutthroat pricing
- D.
  
  Increase foreign trade
16.

The regulatory agency most concerned with false advertising is the:
- A.
  
  Federal Trade Commission
- B.
  
  Antitrust Division of the Justice Department
- C.
  
  National Labor Relations Board
- D.
  
  Federal Deposit Insurance Corp.
17.

Which antitrust act was passed to protect independent retailers from "unfair discrimination" by chain stores?
- A.
  
  FTC Act
- B.
  
  Wheeler-Lea Act
- C.
  
  Robinson-Patman Act
- D.
  
  Sherman Act
18.

All of the following are exempt from antitrust laws EXCEPT:
- A.
  
  Oil companies
- B.
  
  Public utilities
- C.
  
  Professional baseball
- D.
  
  Labor unions
19.

Which of the following is NOT exempt from antitrust laws?
- A.
  
  Public transit systems
- B.
  
  Professional baseball
- C.
  
  Airlines
- D.
  
  Labor unions
20.

The act of selling an item in slightly altered forms at different prices and to different groups of consumers is known as?
- A.
  
  Bundling
- B.
  
  Tie-in sales
- C.
  
  Versioning
- D.
  
  Lemons marketing
21.

The primary measure of monopoly power is called the:
- A.
  
  Litmus text
- B.
  
  Monopoly measure
- C.
  
  Robinson-Patman Act ratio
- D.
  
  Market share test
22.

The Sudsy Soda Company will not sell its soft drinks to a restaurant unless that business also buys paper cups from Sudsy. This requirement is an example of:
- A.
  
  Price differentiation
- B.
  
  Complementary pricing
- C.
  
  Product versioning
- D.
  
  Tie-in sales
23.

The market demand curve for labor:
- A.
  
  Slopes upward
- B.
  
  Slopes downward
- C.
  
  Is horizontal at the going wage rate
- D.
  
  Is vertical at the existing supply of labor
24.

An industry's equilibrium wage rate is established:
- A.
  
  By the slope of the industry demand curve for labor alone
- B.
  
  By the industry supply curve for labor alone
- C.
  
  By the Labor Deparment and based on the cost of living in the area
- D.
  
  By the intersection of the industry supply and demand curves for labor