Ready Set Compete LAP Test

1. Which of the following is one of the main principles of the private enterprise system:

• 1. Monopolies

• 1. Competition

• 1. Price fixing

• 1. Exclusive agreements

1. Burger King and McDonald’s are examples of

• 1. regulated monopolies.

• 1. direct competitors.

• 1. unrelated businesses.

• 1. dissimilar firms.

1. If a consumer chooses to go to the movies rather than to a pizza parlor, then the movie theater and the pizza parlor are

• 1. engaged in prospecting.

• 1. engaged in price competition.

• 1. indirect competitors.

• 1. direct competitors.

1. Most businesses put their greatest competitive efforts into competing

• 1. locally.

• 1. nationally.

• 1. .

     with indirect competitors.

• 1. with direct competitors

1. An electronics store charges less for a new television than other electronics stores. The store is engaging in __________ competition.

• 1. sales

• 1. unethical

• 1. nonprice

• 1. price

1. 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

• 1. price fixing.

• 1. nonprice competition.

• 1. offering rebates.

• 1. clearance sales.

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

• 1. rebates.

• 1. nonprice competition.

• 1. price competition.

• 1. price fixing.

1. A business that advertises a special sale as well as its delivery service is using a combination of __________ competition.

• 1. price and nonprice

• 1. direct and indirect

• 1. perfect and monopolistic

• 1. local and national

1. Which of the following statements about perfect competition is correct:

• 1. It is used as a benchmark to compare real market structures against.

• 1. Products vary from seller to seller.

• 1. There is a limited supply of goods and services.

• 1. Businesses have a good deal of control over the market.

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

• 1. Perfect competition

• 1. Oligopoly

• 1. Monopolistic competition

• 1. Regulated monopoly