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WorksheetsCompetition and Regulation
Total questions: 14
Worksheet time: 8mins
When the pricing of goods or services are at such a low level that other suppliers cannot compete and are forced to leave the market is known as: (a) pricing.
The government would likely block a merger if the merger would
bring two large companies together.
decrease prices too much.
lead to unfair market control.
generate greater efficiencies.
Which of the following effects of an industry’s deregulation would show that it had failed to achieve its objective?
Several large companies have gone bankrupt.
Several large companies have merged.
Market prices have risen significantly.
The industry has expanded wildly.
Which of the following are ways deregulation impacts an industry? Check all that apply.
Cut regulations and reduce competition.
Eliminates price controls, which allows prices to fall.
Removes barriers to entry, which allows new firms to enter the market.
Supports the creation of monopolies.
(a) laws are statutes developed to protect consumers from rapacious business practices by making it illegal for businesses to compete in unfair ways.
Why might the government institute a price control?
to allow monopolies to exist.
to raise the prices of all goods.
to help curb inflation and create balance in the marketplace.
to favor businesses they support.
Which statement describes the impact of declining wages?
No impact occurs
Businesses begin manufacturing more goods
Government can expect revenue to remain the same
Individuals demand fewer goods and services
What is one way that government regulation can encourage competition?
By protecting consumers from dangerous products.
By investigating charges of discrimination in employment.
By administering laws forbidding price-fixing and unfair advertising.
By passing zoning laws limiting certain types of property use
In a mixed market economy, which of these would MOST likely be considered a basic function of government?
to promote monopolies
to correct market failures and redistribute income
to regulate who can purchase services
to ensure the financial stability of all citizens
In a monopoly, customers will pay a higher price because there are no alternative products to those of the supplier.
True
False
Having the option to choose between which cell phone company you want to purchase is an example of
competition in the market
regulation
deregualtion
free market economy
Why is pure competition important?
Economists use it to evaluate less-competitive market structures.
Economists use it to evaluate more-competitive market structures.
Economists use it to evaluate the three conditions for competition.
Economists use it to evaluate perfect competition.
As a consumer, you will usually choose the
least expensive option
option that provides the highest quality
option providing the most satisfaction at the best value
most readily available option
A business in monopolistic competition has no control over price if it wants to sell its products.
True
False
