Economics: Competition Quiz

In economic terms, what does GDP stand for?

• Gross Domestic Product
• Gross National Product
• General Domestic Price
• Global Development Plan

In economic terms, what is a trade war?

• A trade war is when countries collaborate to reduce tariffs.
• A trade war is a situation where countries engage in increasing tariffs or trade barriers against each other.
• A trade war is a peaceful negotiation between countries.
• A trade war is a situation where countries exchange goods without restrictions.

What is a tariff?

• A tariff is a type of trade bonus.

• A tariff is a regulation on domestic production.
• A tariff is a subsidy for local businesses.
• A tariff is a tax on imports or exports.

What does WTO an acronym for?

• World Trade Organization
• Worldwide Transit Organization

• World Transport Organization
• World Trade Office

In economic terms, perfection competition is _____.

• a market structure with few buyers and many sellers
• a market structure with many buyers and sellers, identical or close to identical products, and no barriers to entry.

• a market structure with a single seller and many buyers
• a market structure with differentiated products and high barriers to entry

Which is NOT an example of a standardized product?

• a mass-produced t-shirt

• a gallon of milk

• a pound of ground beef

• a video game system

TRUE/FALSE: There are no actual perfectly competitive markets in the real world.

• FALSE
• TRUE

Imagine that you are at a farmer's market. There are five farmers all selling their own apples all similar in quality and size. How much will prices likely vary from farmer to farmer according to economic theory?

• Prices will be the same for all farmers.
• Prices will vary significantly.

• Prices will likely only vary somewhat or a small amount.

What is a monopoly?

• A monopoly is a market structure with many sellers competing equally.
• A monopoly occurs when a government controls all market prices.
• A monopoly is defined as a situation where consumers have unlimited choices.
• A monopoly is a market structure characterized by a single seller dominating the market.

In economic terms, what is a cartel?

• A cartel is a type of government subsidy for businesses.
• A cartel is a legal agreement to increase competition.
• A cartel is a form of consumer protection agency.
• A cartel is an agreement between competing firms to control prices and limit production.