1. ______ is a market structure in which a few large firms dominate the global industry?

A. perfect competition

B. monopoly

C. oligopoly

D. monopolistic competition

2. in the case of a small country, which of the following is true regarding the effects of an import quota versus an import tariff?

A. domestic price of the imported good increases

B. government revenue always increases

C. when domestic consumer wants to buy more of the imported good they can just import more

D. domestic producers surplus always increases

3. If a large country imposes a tariff on imported cars, then

A. both domestic producer surplus and domestic consumer surplus for cars will decline

B.both domestic producer surplus and domestic consumer surplus for cars will increase

C. domestic producer surplus for cars will increase, but domestic consumer surplus will decline

D.domestic producer surplus for cars will decline, but domestic consumer surplus will increase

4. X represents exports and M represents imports of the industry's products. Which of the following is false?

A. Net trade is [X-M]

B. Net trade measures inter-industry trade

C. intra-industry trade is (X-M)-[X-M]

D.intra-industry trade is 2X if X>M

5. Under product differentiation, which of the following is true?

A. the price that a firm can charge decreases as the number of varieties available in the market increases

B. each firm has some degree of monopoly power based on its unique variety

C.the price curve is downward sloping

D. the unit cost curve is downward sloping