SHS Economics · Year 2
Market Structure practice questions
The characteristics of perfect competition, monopoly, oligopoly and monopolistic competition.
20 questions in this topic: 8 recall, 6 applying skills and concepts, 5 strategic thinking and 1 extended thinking. Every one carries a written explanation.
Sample questions
3 of 20 questions in this topic. Sign up to answer them and see the explanations.
- Question 1Skills & concepts
Which of these is listed as a disadvantage of a monopoly?
- aRestricted output, since a monopolist may produce less than a competitive market would, causing shortages
- bLower prices than in a competitive market
- cStrong incentives to innovate due to intense competition
- dEasy entry for new competing firms
- Question 2Recall
The Electricity Company of Ghana (ECG) and Ghana Water Company are cited in the section as examples of
- aa monopoly, where a single firm controls the entire market with no close substitutes
- bperfect competition, since many firms provide these services
- cmonopolistic competition, since these companies compete on branding
- dan oligopoly, since a small number of firms dominate
- Question 3Recall
Subnormal profit is best described as
- aprofit that is less than the normal profit level, meaning a firm is not covering its opportunity costs
- bprofit that exceeds what a firm needs to remain in business
- ca synonym for supernormal profit
- dthe profit earned only by monopolies
Answer these and 17 more on Market Structure
Free account. Instant marking, a written explanation for every question.
Start practising freeMore Economics Year 2 topics
- Agriculture, Industries and Trade
- Demand (Y2)
- Macroeconomic Variables
- Market Equilibrium
- Money, Financial Institutions and Public Finance
- Production, Cost & Revenue
- Supply (Y2)
- Tools in Economic Analysis
- Utility (Y2)