Quizizz--Economics (Module 5--Element 2.2)--Competitive Markets

What is one of the main benefits of competition according to the text?

• It increases the cost of production.

• It encourages producers to eliminate waste.

• It reduces the quality of goods.

• It limits consumer choices.

According to Clair Wilcox, what does competition do to inefficient producers?

• It supports them to grow.

• It weeds them out.

• It merges them with efficient producers.

• It increases their market share.

What is necessary for a market to have competition?

• Closed market with limited sellers.

• Open market with alternative sellers.

• Government-controlled pricing.

• Monopoly of a single firm.

What is one method successful competitors use to outperform rivals?

• Reducing product quality.

• Increasing prices without adding value.

• Improving convenience of location.

• Limiting advertising efforts.

What prevents large firms like McDonald's from raising prices and providing poor service?

• Government regulations.

• Consumer loyalty.

• Competition from rivals.

• Lack of resources.

What is one reason small upstarts can take business from larger companies?

• They have more employees.

• They provide better products at lower prices.

• They have more advertising.

• They have longer business hours.

Which company is mentioned as the world's largest retailer?

• Sears

• Toyota

• Walmart

• Ford

What is a strong incentive for firms to develop better products?

• Government regulations

• Competition

• Employee demands

• Tax incentives

In a market economy, what do entrepreneurs need to innovate?

• Approval from central planners

• Support of investors

• Majority vote from consumers

• Permission from business rivals

What is the typical pattern followed by new products when they are introduced to the market?

• High quality and low price

• Low quality and high price

• High quality and high price

• Low quality and low price