Economics- Short Quiz On Business Costs And Market Structure

10 Questions | Total Attempts: 75

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Economics Quizzes & Trivia

A short quiz on selected topics.


Questions and Answers
  • 1. 
    A business, in the long run, must have ______________to avoid shutdown.
    • A. 

      Employees

    • B. 

      Sales

    • C. 

      Good products

    • D. 

      Profit

  • 2. 
    In the short run, businesses have...
    • A. 

      Fixed and variable costs.

    • B. 

      Revenue and losses.

    • C. 

      Redesign of products.

    • D. 

      Changing fixed expenses.

  • 3. 
    Total Costs, in the short run, consists of...
    • A. 

      Revenue and expenses.

    • B. 

      Taxes and insurance.

    • C. 

      Fixed and variable costs.

    • D. 

      Government regulation- state and local.

  • 4. 
    Total revenue is made up of...
    • A. 

      Sales minus expenses.

    • B. 

      Number sold times the price.

    • C. 

      Fixed and variable costs.

    • D. 

      Many unrelated items in the books.

  • 5. 
    The law of diminishing marginal returns says that, at some point in the production process,
    • A. 

      Costs will begin to increase uncontrollably.

    • B. 

      Adding additional inputs will bring less additional output.

    • C. 

      Fixed costs will become variable costs.

    • D. 

      Your rent will increase.

  • 6. 
    Marginal Cost is the added expense of...
    • A. 

      Increasing production to the maximum.

    • B. 

      Adding edges to your production site.

    • C. 

      Fixed costs.

    • D. 

      Producing one more unit of production.

  • 7. 
    Which market structure has the most open "entry" into the business market?
    • A. 

      Perfect Competition.

    • B. 

      Monopolistic Competition.

    • C. 

      Oligopoly.

    • D. 

      Monopoly.

  • 8. 
    The soft drink market is an example of which type of market structure?
    • A. 

      Perfect Competition.

    • B. 

      Monopolistic Competition.

    • C. 

      Oligopoly.

    • D. 

      Monopoly.

  • 9. 
    Pepsico makes soft drinks, Frito Lay products, Quaker products, Pizza Hut, the Yum brands, Tropicana products, KFC, to name a few. It would be considered to be...
    • A. 

      A monopoly.

    • B. 

      A perfect competitor. a perfect competitor.

    • C. 

      An monopolistic competitor.

    • D. 

      An oligopolistic food conglomerate.

  • 10. 
    When Pepsico added Dole pineapple to its products, and also owned Tropicana, this could be an example of...
    • A. 

      Horizontal expansion.

    • B. 

      Vertical expansion.

    • C. 

      Monopoly.

    • D. 

      Conglomerate expansion.

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