Practice Quiz

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71. Which of the following conditions is not necessary for a perfect market?
  1. No barrier to entry or exit
  2. All actors have total information about the market.
  3. Equal access to technology
  4. The absence of regulation
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72. Which of the following is an example of insider trading?
  1. A person inside the company uses secret information to make trades.
  2. A person at a partner company uses secret information to make trades.
  3. A person with tips from a friend inside the company uses that information to make trades.
  4. All of the above
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73. What is arbitrage?
  1. Making a profit by manipulating discrepancies between multiple markets
  2. A system for arbitrating trade disputes
  3. Buying and selling stocks through an intermediary
  4. A system that determines the legality of major trades
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74. What is it called when a company controls every portion of a product’s lifecycle, from raw materials to retail sale?
  1. Vertical integration
  2. Horizontal integration
  3. Monopolistic activity
  4. Economy of scale
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75. All of the following market activities are legal except:
  1. Vertical integration
  2. Horizontal integration
  3. Monopolistic activities
  4. Economies of scale
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