Bus Essen Test Obj 2.05 Part 2

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The automobile industry, the pharmaceutical industry, and the oil industry are all examples of

• perfect competition.
• oligopolies.
• monopolistic competition.

Which of the following are qualities of monopolies:

• High prices and much competition
• Low prices and little competition
• High prices and low production

In many places, trash pickup is legally controlled by just one company. This is known as

• price competition.
• a regulated monopoly.
• price discrimination.

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

• Celler-Kefauver Antimerger Act
• Robinson-Patman Act
• Sherman Antitrust Act

One way that competition benefits business is by encouraging the creation of

• competition
• unrelated firms.
• new companies.

What motivates businesses to produce efficiently and sell effectively?

• The need for recognition
• The hope of making a profit
• The desire to spend money

One of the ways that competition benefits customers is by encouraging businesses to

• reduce the number of their services.
• increase the price of their products.
• improve their existing products.

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

• Fewer new businesses in the market
• Wider product selection
• Higher product prices

Because of competition, people in our society enjoy

• fewer changes in existing goods or services.
• government control of our economic system and businesses.
• a higher standard of living than that of people in many other countries.