quiz from group 6

Why is competition considered important for consumers?

• • It reduces the variety of products available.

• • It ensures higher prices for products and services.

• It leads to better quality, lower prices, and more choices.

• • It encourages companies to become monopolies.

How does competition encourage businesses to progress?

• • By forcing businesses to maintain the same products year after year.

• By eliminating the need for innovation or new ideas.

• • By motivating businesses to innovate and improve their products or services.

• • By discouraging businesses from lowering their prices.

Which of the following industries shows the benefits of competition in driving innovation?

• • The transportation industry, where ride-sharing companies like Uber and Lyft disrupted traditional taxis.

• • The coffee industry, where only one company dominates the market.

• • The energy sector, where there is no competition between providers.

• • The farming industry, where prices are fixed across all producers.

What negative outcome can arise from a lack of competition in a market?

• • Prices decrease, and innovation accelerates.

• • A monopoly may form, leading to higher prices and less innovation.

• • Companies are forced to create high-quality products.

• New businesses emerge with innovative ideas.

Which of the following is an example of competition driving efficiency and cost reduction?

• • Airlines reduce flight frequencies to increase prices.

• • Online retailers like Amazon and Walmart compete to offer lower prices and faster delivery.

• A monopoly dominating an industry without improving service.

• • A government-imposed price ceiling on all products.