Business Revision

Which of the following options best defines perfect competition?   

• A situation where one producer or consumer has the ability to control prices.                                                                                                                                                                                                                                                                    

• A scenario in which there are numerous suppliers and buyers, each with a small

        market share.

• A market where companies can distinguish their goods from their rivals.

• A market where firms can set prices for their products.

Identify the type of demand curve that exists in perfect competition.                                                                                          

•  Inelastic                                                                                                               

•  Elastic

• Downward sloping 

• Upward sloping

Based on the concept of perfect competition, which of the following

       scenarios is an example of a firm differentiating its product to justify

       a higher price?                                                                                              

• A clothing store that sells identical items as other stores in the area but charges a

        higher price.

• A gas station that charges a lower price for fuel than other stations in the area.

• A fruit vendor that offers unique, exotic fruits not available from other vendors and

       charges a premium price.

• A coffee shop that offers the same menu as other shops in the area but charges

        a higher price

In a perfectly competitive market with a standardized product, which

       of the following is most likely to meet the criterion?                                                                                                                                                                 

• Wheat grown using the same farming methods by different farmers.

• Notebook paper produced by different companies using different materials.

• Designer handbags made by different companies using unique designs.

• Antique furniture made by different craftsmen using unique materials.

The impact of market forces on the participation of producers within

        the market in an ideal competitive market environment is:                        

• To compel producers to sustain their market presence continuously.

• To entice buyers to enter the market even under unfavorable market conditions.

• To enable producers to enter or exit a particular market without limitations.

• To limit the involvement of businesses in the market.                

A situation where you make a compromise between two things. This definition

     is true for:                                                                                                             

• An opportunity cost 

• A Trade-off

• A cost- benefit Analysis

• Scarcity

You are a parent who needs to decide between taking a vacation with your family

      or saving money for your child's education fund. This is an example of:

• Making a financial decision                                                                                    

• Making a trade-off

• Balancing short-term and long-term goals

• All of the above

In a small town with limited employment opportunities, there is a high demand

      for jobs but only a few job openings available. This creates a situation where individuals

       must compete for the limited job positions. This is an example of:

• Scarcity 

• Fulfillment

• Surplus

• Abundance

Given the situation where you have limited time available and need to choose

      between attending a social event or studying for an important exam. You decide to prioritize

        studying for the exam. What is the opportunity cost of your decision?

• Going out for a movie with friends                                                                                                              

• Spending time on a hobby or recreational activity

• Achieving a high grade on the exam

• Missing out on the fun at the social event

Considering the primary purpose of making economic choices and their impact on

       efficient resource allocation, which option correctly identifies this relationship? 

• Economic choices aim to maximize personal income, leading to efficient resource

    allocation.

• Effective resource allocation strategies can completely eliminate scarcity through

  economic choices.

•   Efficient resource allocation requires considering trade-offs and opportunity costs when

  making economic choices.

•   Minimizing government intervention is the key factor for efficient resource allocation in

   economic decision-making.