2.03 - 2.05 Test Business Environment

Which of the following types of economic systems adopts the fewest new ideas or improvements?

• Command

• Socialist Command

• Traditional

• Market

One way that competition helps build a prosperous society is by

• replacing small businesses with large ones

• creating government legislation

• creating new jobs

• increasing the money supply

Because of competition, people in our society enjoy

• a narrower selection of goods or services

• fewer changes in existing goods or services

• government control of our economic system and businesses

• higher standard of living than that of people in many other countries

Which of the following pieces of legislation prevents monopolies from forming and hinders price fixing

• Clayton Act

• Robinson-Patman Act

• Sherman Antitrust Act

• Celler-Kefauver Antimerger Act

Which of the following is a direct benefit to consumers of the effects of competition

• higher product prices

• wider product selection

• wise use of resources

• fewer new businesses in the market

Which of the following are qualities of monopolies

• high prices and low production

• low production and much competition

• high prices and much competition

• low prices and little competition

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

• rebates

• non price competition

• price fixing

• price competition

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

• perfect competition

• regulated monopoly

• oligopoly

• monopolistic competition

Most businesses put their greatest competitive efforts into competing

• locally

• nationally

• with direct competitors

• with indirect 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