Worksheets24 Government Intervention and Competition
Total questions: 10
Worksheet time: 8mins
What does 'fit for purpose' mean?
a consumer must be ready for purchase
a consumer needs to be able to use a purchased good for the purpose it was intended
a producer must be ready to increase productivity
a producer must actively consuming goods
Which of the following is an example of an anti-competitive practice a firm may engage in and a regulator would actively try and prevent?
Buy one get one free offers
price fixing by dominant firms in a market
instore competitions for consumers to enter
lowering barriers to entry in a market
What is the purpose of a Government Regulatory Body such as the Competitions Markets Authority (CMA) in the UK?
encourage growth of dominant firms
protect the interests of consumers
increase the power of monopolies
reduce competition in the market
If a whole industry is dominated by one firm, how can a Government effectively intervene to protect consumers from the firm and prevent anti-competitive activities?
setup a meeting with the firm once a month and encourage them to think about the consumers
Encourage consumers to write letters to the firm to ask for better prices
setup a special industry regulatory body to control the prices charged by such firms and issue fines if quality standards are not met
Without government intervention, consumers might be exploited. The following are examples of the ways in which a firm might exploit consumers, except for....? (choose one option)
restricting consumer choice by market sharing
increasing prices to higher levels than they would be in a competitive market
reducing prices to make their goods competitive and affordable for consumers
raising barriers to entry by spending huge amounts of money on advertising, which smaller firms could not match
Mergers and takeover usually result in ……………………. competition in the market. (Pick an option to complete the sentence
no change in
an increase in
a reduction of
Which of the following is an example of an anti-competitive practice?
advertising
product differentiation
paying high wages to workers
price fixing
Which of the following is a barrier to entry?
low labour productivity
diseconomies of scale
high start up costs
inflation
Which of the following is a feature of a monopoly?
all firms are price takers
consumers have lots of choice
barriers to entry
a large number of sellers in the market
Which of the following is a possible disadvantage of oligopoly?
collusion
lower prices
more choice
more innovation
