Economic Policy - General Equilibrium, Monopoly, And Oligopoly
Take our quiz to help you learn about economic policy! Read chapters 12 to 15 of Case, Fair, and Oster's 'Principlies of Economics' and answer the following questions. The aim of this quiz is to help EC1040 students with their economic policy revision for the JF summer exam. There is a one hour time limit and 25-30 questions. You will not be able to go back and review your answers after each question, so make sure and check your answer while you're answering it!When you get your results, explanations for each answer will be given to help you to improve your score. Best of luck!
- 1.
Monopoly occurs when there is a single in the market of a certain good?- A.
Household
- B.
Buyer
- C.
Producer
- D.
Consumer
- E.
Industry
- 2.
Bob and Susie are sick of the bad service on Ryanair and hate the high prices of Aerlingus. They want to start their own airline- "Come fly with Bob and Susie"! What are their barriers to entering the market?
- A.
Patent
- B.
Sole ownership of necessary resources
- C.
Start-up costs are too high
- 3.
Jill buys a video phone with her Christmas Bonus. She plans to talk to all her friends with her new phone. She then realises that none of her friends have video phones. What is this an example of?
- A.
Network Externalities
- B.
Price discrimination
- C.
Barrier to entry
- D.
Ownership of a scarce factor of production
- 4.
The Big Mac is known as the symbol of American capitalism and 17 are sold every second. To which market structure does McDonalds belong?
- A.
Monopoly
- B.
Oligopoly
- C.
Perfect Competition
- 5.
The relative profitability of an industry is measured using a model developed by Michael Porter. Name this model.
- A.
The three forces model
- B.
The six forces model
- C.
The four forces model
- D.
The five forces model
- 6.
The average price of mobile phones suddenly drops by €30. Which of these answers could not be true?
- A.
There was a major technological advance
- B.
The supply curve for the mobile phone industry would shift to the right
- C.
Demand for household phones would increase
- D.
Demand for mobile phones would increase
- 7.
Demand for housing in Dublin suddenly rises. Which of these answers is true?
- A.
Unemployment would increase
- B.
Housing prices would fall
- C.
The demand curve for the housing market would shift to the left
- 8.
In June, Ross decides to sell icecream from a kart on the street. First he goes to Finglas and sell his icecreams for €2 each. The next day Ross decides to go to Donnybrook and he realises he can get a higher price for his product. So he charges €5 per ice cream. What is this an example of?
- A.
Rule of reason
- B.
Monopoly
- C.
Pure genius
- D.
Price discrimination
- 9.Anne likes U2 and Jim likes B*witched. 98Fm ran a competition with a U2 cd and B*witched CD up for grabs. Both Anne and Jim entered. Anne won the B*witched CD and Jim won the U2 Cd. Afterwards the both swapped to get the one they wanted. What is in effect here?
- A.
Efficient market
- B.
The Industrial Revolution
- C.
Rawlsian justice
- D.
Pareto Efficiency
- E.
Rent-seeking behaviour
- 10.What is partial equilibrium analysis?
- A.
The condition that exists when some markets in an economy are in simultaneous equilibrium.
- B.
Process of examining the equilibrium conditions in individual markets and for households and firms separately.
- C.
The condition in which the economy is producing what people want at least possible cost.
- 11.
The US beer industry is dominated by two producers: Anheuser-Busch and Miller-Coors with a two firm concentration ratio of 80%. Define the term concentration ratio.
- A.
The alcohol content of beer
- B.
The ability of beer drinkers to pay attention
- C.
The share of industry output in sales or employment accounted for by the top firms
- 12.In Economics, what does the term Cartel refer to?
- A.
A method of plotting two variables on one graph
- B.
A five member american pop-rock band from Conyurs Georgia
- C.
A group of firms that gets together and makes joint price and output decisions to maximise joint profits
- 13.In economic terms, what does 'horizontal differentiation' mean?
- A.
An object looking different when you're sitting down
- B.
Products differ in ways that make them better for some and worse for others
- C.
A product difference that appears to make it better for everyone
- 14.The free market ensures the efficient allocation of resources to firms. True or false?
- A.
True
- B.
False
- 15.
The Sherman Act of 1980 is a very important act in the history of economics. What did this act deal with?
- A.
The Nutty Professor
- B.
Prohibiting attempted monopolies
- C.
Taking down barriers to entry
- D.
Outlawing price discrimination
- 16.Which of the following is an example of a monopoly?
- A.
Buying a dress on Grafton St.
- B.
Buying a meal on an airplane
- C.
Only newsagents selling naggins of vodka
- 17.Which of the following is not an example of market failure?
- A.
Externalities
- B.
Monopoly
- C.
Diminishing marginal utility
- D.
Imperfect information
- 18.
If all car dealerships in Dublin made an agreement not to a sell a car below €25,000, what would this be an example of?
- A.
Dominant strategy
- B.
Collusion
- C.
Tacit collusion
- D.
Perfect competition
- 19.
Markets in which entry and exit are so easy that the threat of potential entry holds down prices to competitive level are known as....
- A.
Threatening markets
- B.
Entry markets
- C.
Barrier markets
- D.
Contestable markets
- 20.What does the term duopoly describe?
- A.
A two-firm monopoly
- B.
A board game
- C.
A two-firm oligopoly
- D.
A ten-firm oligopoly
- 21.
A beautiful mind is a film that tells the story of John Nash, an economics nobel prize winner. What is the name given to his theory which analyses choices made by rival firms to maximise well being and anticipate reactions?
- A.
Nash theory
- B.
Game theory
- C.
Mind theory
- D.
Firm theory
- 22.
If Michael O'Leary tried to buy all the shares in Aer Lingus, who would not allow it?
- A.
The Competition Authority
- B.
The Federal Trade Commission
- C.
Libo-Cop
- D.
The Monopoly Police
- 23.Monopolistic competition among nightclubs in Dublin may be beneficial for students because...
- A.
It means there is less choice
- B.
Bad nightclubs will be forced to close
- C.
It leads to a better choice
Questions: 10 | Attempts: 24203 | Last updated: Mar 22, 2022
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