EOC review 2.05.3

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

• Monopolies

• Competition

• Price fixing

• Exclusive agreements

Burger King and McDonald’s are examples of

• regulated monopolies

• unrelated businesses

• dissimilar firms

• 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

• price competition

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