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WorksheetsVCE Economics Unit 1 - Consumers & Businesses
Total questions: 42
Worksheet time: 22mins
A hot Jam donut shop and a custard donut place are working together to maximize there business profits. Which anti competitive behavior is this?
Predatory pricing
Cartel Conduct
Its not illegal
Cartel Conduct & Predatory Pricing
Define Price Discrimination.
The illegal act of charging low prices in order to drive a competitor out of the market. Once the competition has been removed, the business is then free to charge excessive prices.
Where a business charges consumers different prices for the same product
Goods or services that are both non-excludable and non-rival in consumption
When part of the original payment for a good or service is returned to the buyer
What does the triple bottom line represent?
Plan, Planet, Profit
Planet, People, Profit
Planet, Audience, Profit
Profit, Profit, Profit
cartel conducts is when...?
Two or more businesses combine their resources to maximize satisfaction
Two or businesses combine their resources to maximize profit
Two or more businesses combine their efforts to maximize profit
When a business aims to manipulate consumers
A local donut business is looking to improve productivity and increase their profit margins. Which example would best illustrate this?
Dismiss a staff member
Purchase an automatic donut maker
Hire a new staff member
Training employees with the latest OHS regulations
Mr Sparrow has set up a donut shop. He wants to compete with the canteen and has picked up 100 of the 300 Whitefriars students buying donuts for that month. He has a third of?
Brand Loyalty
Bounded Self-Interest
Market Share
Predatory Pricing
Which is not considered a feature of Cartel Conduct?
Sharing Markets
Collaborative Consumption
Price Fixing
Rigging Bids
What makes the customer less responsive to price increases?
Increasing a products price and then putting it on sale
Brand loyalty
Small increases at different times
Predatory prices
Price fixing is when...?
competitors agree to divide market so participants are sheltered from competitors
when competitors agree on a pricing structure rather than competing
two business collaborate and combine efforts to maximize profits
decreasing prices for certain people
Which of the following concepts are associated with bounded rationality?
Anchoring effect
Incentives
Willpower
Self-interest
Which is an example of internal influences ?
Habit
Culture
Advertising
Marketing
You read 20 reviews on yuzu glazed doughnuts, then you talk to your friend and he convinces you that it is the greatest doughnut type ever. What bias is this?
Overconfidence bias
Vividness
Herd behaviour
Framing bias
What is predatory pricing?
When a business charges different prices for the same product
When a business joins forces with another to manipulate the market.
When a company sets its prices at a low level to damage a competitor
When a company sets its prices at a high level to damage a competitor
Which of the following statements is correct?
Community Involvement is when a community starts a business
Gender equality is when men and women have to work together in the same job
Innovation can cause disruption to traditional goods and services
Conducting research and development makes it quicker to start a business
Who does the carbon tax effect mostly?
The top 500 carbon emitting companies
The consumer
The top 500 richest companies
The company that produces the most carbon emissions
Which is not a traditional viewpoint in businesses?
Consumers get what they want
Resources are allocated most efficiently
Businesses are always looking to improve productivity
Businesses make the most profit possible
What is an example of external influences?
Personality
Ethics
Culture
Demand for Veblen goods
What is Behavioural economics?
An economic system where the majority of productive assets are state owned
Where consumers make decisions that are good enough
An action taken by a uniformed party to induce an informed party to reveal information
A study that seeks to incorporate the insights of psychology into economics, to enhance the explanatory power of economics.
Alfred would like to invest his money into a Cheese company but everyone else is investing in a Milk Company. He is uncertain about which one to invest in and decides to invest in the Milk Company because everyone else is. What is this an example of?
Mob Mentality
Herd Behavior
Majority Bias
Mob Bias
_________ are described as when individuals are willing to buy a certain item even after their price rises.
Veblen goods
Brand Loyalty
Market power
A really dedicated person
The Government advertising the harmful effects of sugary foods is a?
Nudge
Smack
Bump
Shove
Which of the following is not an internal influence?
Conspicuous Consumer
Habit
Ethics
Advertising
What is most likely to be a negative incentive ?
Price gouging
Production subsidies
Drought assistance
Child-care subsidies
What other term can be used for Veblen Goods?
Status Goods
Cheap Goods
Lower Quality Goods
Consumer Sovereignty
Company A decided to lower their prices so low, that Company B is unable to make any profit and so they have to leave the market thus giving Company A more market power. What is this an example of?
Cartel Conduct
Predatory Pricing
Targeted Pricing
Targeted Price-Cuts
What is not a factor of bounded rationality?
Vividness
Herd Behaviour
Under Confidence
Framing Bias
How is the introduction of technology useful for businesses?
increases productivity
decreases costs
improves market share
all of the above
The law of diminishing marginal utility states what?
Total utility grows more rapidly with every additional unit consumed
Additional units of consumption generates the same level of utility
Marginal units of consumption leads to less satisfaction than the ones previous
Marginal and Total Utility are inversely linked
Homo Economicus is when...?
consumers have rational ordered preferences and make informed decisions
consumers gain satisfaction from been seen consuming goods by other people
markets coordinate consumer and business self interest
businesses maximizing profit margin with a more efficient use of resources
List the 3 'Internal influences'.
Culture, Marketing, Government
Bounded rationality, Overconfidence bias, Vividness
Personality types, Ethics, Habit
Gender equality, Participation, Unconscious bias
Mr Fox walks into a dumpling store ready to chow down on dumplings. As Mr Ingram continues to order more and more dumplings his satisfaction from the dumplings diminishes after every bite. What is this called?
Law of diminishing marginal utility
Conspicuous Consumption
Total Utility
Law of increasing metabolism
Which one is NOT part of changing goals for businesses?
Sustainability
Innovation
R&D
Targeted Advertising
What is bounded rationality?
the idea that people can only make limited rational decisions
the idea that people will always make rational decisions
the idea that people will always make irrational decisions
none of the above
Behavioral Economics studies...?
Bounded Rationality
External Influences
Internal Influences
Externalities
What is multi-branding?
When a company markets their products under separate and distinct brand names.
When a company makes multiple of the same product.
When a company charges different amounts for the same product.
When a company makes a lot of money.
Which company doesn't price discriminate?
Qantas
Hoyts
Woolworths
Wet & Wild
Pick the correct evidence of the Gender Pay Gap.
Women earn similar income to men.
Women on average earn less retirement and superannuation savings.
Women are more likely to advance their careers further than men.
Men have more access to family-friendly policies such as flexible working arrangements.
If Woolworths and Coles were seen to be working together in order to drive away small businesses from a market, who would police this situation?
The ACCC
The ATO
The ABC
ASIO
what is the best description of conspicuous consumption?
when consumers purchase goods that will help them in the long run
when consumers purchase goods that are very low in price
consumers buy certain goods to improve their social image
consumers buy certain goods that they can make profit from
Frank is going shopping for donuts and notices that a new store has opened up down the road from his favorite donut store. This new donut store is selling donuts for a lower price when compared to the other store but Frank decides to still purchase donuts from his favorite store anyway. What is this an example of?
Company Loyalty
Company Satisfaction
Business Loyalty
Brand Loyalty
Which of the following aspects does not help gender equality?
Flexible working arrangements
Blind recruitment
Feminism
Unconscious bias
What isn't a benefit of the inclusion of women in the workplace?
Woman introduce a diverse range of opinions within a company to avoid any silly decisions made by one dominant demographic.
Women assist in creating a more professional work environment and conversations involving women employees tend to have better outcomes.
Women make the better lunches within the workplace which improves employees moods and therefore improves their work efficiency.
Women are increasingly more highly educated than men in Australia and therefore women become the most skilled workers. Many businesses want women to work for them due to their more elite skill set.
