Sharp_POBF 5.02 Ready Set Compete

Which of the following is one of the main principles of the private enterprise system:

• monopolies

• price fixing

• competition

• exclusive agreements

Burger King and McDonald’s are examples of

• regulated monopolies

• dissimilar firms

• unrelated businesses

• direct competitors

If a consumer chooses to go to the movies rather than to a pizza parlor, then the movie theater and the pizza parlor are

• direct competitors

• indirect competitors

• engaged in prospecting

• engaged in price competition

Most businesses put their greatest competitive efforts into competing

• locally

• nationally

• with direct competitors

• with indirect competitors

An electronics store charges less for a new television than other electronics stores. The store is engaging in ________ competition.

• price

• nonprice

• unethical

• sales

When Maura purchased a new car, she was able to get part of the purchase price back from the car’s manufacturer. The car’s manufacturer engaged in

• price fixing

• nonprice competition

• clearance sales

• offering rebates

Offering high quality, large assortments, and free shipping are examples of

• rebates

• nonprice competition

• price fixing

• offering rebates

A business that advertises a special sale as well as its delivery service is using a combination of ___________ competition.

• price and nonprice

• direct and indirect

• perfect and monopolistic

• local and national

Which of the following statements about perfect competition is correct:

• There is a limited supply of goods and services.

• Businesses have a good deal of control over the market.

• Products vary from seller to seller.

• It is used as a benchmark to compare real market structures against.

What type of market structure is most commonly found in a private enterprise economy?

• perfect competition

• regulated monopoly

• oligopoly

• monopolistic competition