Economics MOCK TEST

What is the best goal for the government in a competitive market?

• To annually earn enough profit to continue innovating own business.

• To operate the market and spend on import fees.

• To control the market and give birth to healthy competition.

What is the type of competition that is referred to as the "least price setter"?

• (Monopoly)

  They make up 80% of the market and will set on only one price range.

• (Monopoly)

  They can use cut-throat competition.

• (Oligopoly)

  They make up 80% of the market and will set on only one price range.

• (Oligopoly)

  They can use cut-throat competition.

What does "most price taker" mean in a market?

• Highest bidder of a buyer

• Will take on the price that is preferable to the customers.

• Will change the price range to the highest to exterminate competition.

What best explains the "Theoretical Market"?

• Homogenity of Products

• Imperfect Competition

• Selling products that don't have any relations to any products.

• Selling a new product that a business has never made.

Oligopoly focuses HEAVILY on product differentation.

• (FALSE) They need to focus mainly on advertisements because the products of an oligopoly market have similarities.

• (TRUE) They need to differentiate between other businesses in all sectors except price.

An oligopoly market is prone to price collusion because... (BEST ANSWER)

• Businesses will try to attract customers by setting a low price to gain more sales.

• Businesses will legally and secretly lower their price range by a little to attract more customers, without the other businesses knowing.

• Businesses will exterminate other weak firms together by setting a common price.

You and your friend have "opposite goals" when it comes to starting a business. What is the wisest thing should you do?

• Start a partnership with your friend and try to find a common goal.

• Start a sole-proprietorship business and hire your friend.

• Start a sole-proprietorship business to succeed in your own goal.

What kind of Monopoly Market is this? Finally! An "official" computer gaming renthouse has opened in our province.

• (Technological Market)

  The business is needed for their technology to serve as a necessity to live.

• (Geographical Market)

  No other firm can compete in that area.

• (Gaming Market)

  The business is solely focused on gaming.

Why can a monopoly market resort to cut-throat-competition? (MONOPOLY BUSINESS PERSPECTIVE)

• They know they have a higher profit rate than the other businesses.

• They can raise their price range to an expensive range to convince customers their products are luxurious.

• They know their competition's recognition in the market is very equal to their own business recognition.

You don't have any "fee dues" in your life, and you like "working with others equally", you are also "not a competitive" person, what should you do?

• Start a cooperative to earn slow but sure money.

• Start a cooperative and have your goal to implement social justice and progress economic development.

• Start a corporation and be the CEO of a business that is in an oligopoly market.