WorksheetsQuizizz--Economics (Module 5--Element 2.2)--Competitive Markets
Total questions: 31
Worksheet time: 16mins
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
What role do initial purchasers play in the introduction of new products?
They decrease the product's start-up cost
They provide feedback for product improvement
They cover the product's start-up cost
They expand the product's availability
What example is given to illustrate the price-quality pattern of new products?
Televisions
Automobiles
Cellular phones
Personal computers
What changes occur to products over time according to the text?
Size increases, price increases
Size decreases, price decreases
Size increases, price decreases
Size decreases, price increases
What is the price-quality pattern mentioned in the text?
Products become more expensive over time.
Entrepreneurs make products cheaper and improve quality.
Consumers prefer expensive products.
Quality decreases as price decreases.
What must producers do to survive in a competitive environment?
Focus only on current successful products.
Avoid adopting new ideas.
Anticipate, identify, and adopt improved ideas.
Increase prices to match competitors.
What is the primary test a business must pass to succeed in a market economy?
Popularity
Cost-effectiveness
Innovation
Branding
What happens to a business if its structure results in higher costs than other forms?
It will dominate the market.
It will be driven from the market.
It will maintain its market position.
It will receive government support.
What is a key advantage for large firms in industries like automobile manufacturing?
Personalized service
Economies of scale
Specialized printing
Gourmet services
In which type of market are small firms more likely to dominate?
Automobile manufacturing
Supermarkets
Legal and medical services
Airplane production
What role does self-interest play in economic progress according to the text?
It hinders competition
It leads to inefficiency
It is a powerful force for progress
It reduces product quality
What is an example of dynamic competition leading to new methods?
The horse and buggy replacing the automobile
The mom-and-pop grocery replacing the supermarket
The automobile replacing the horse and buggy
The decline of personalized services
What term did Joseph Schumpeter use to describe the dynamic competition that drives economic progress?
Creative innovation
Creative destruction
Economic evolution
Market revolution
According to Adam Smith in "The Wealth of Nations," what motivates individuals to provide goods and services?
Benevolence
Self-interest
Altruism
Generosity
What is one effect of clearly defined and enforced private property rights in competitive markets?
Increased government intervention
Higher prices for consumers
Efficient use of resources
Decreased competition
Why do businesses often lobby for policies according to the text?
To increase competition
To protect themselves from competition
To support new market entrants
To reduce regulation
What is a common action businesses take to limit competition?
Lowering prices
Erecting barriers to market entry
Increasing advertising
Expanding product lines
What does the text suggest about the relationship between competition and being 'pro-business'?
Competition is always pro-business
Competition is not necessarily pro-business
Competition is irrelevant to business
Competition always harms businesses
Competition is important for the market because it keeps producers accountable to consumers by:
keeping prices low and quality low.
keeping prices high and quality low.
keeping prices high and quality high.
keeping prices low and quality high.
What keeps businesses from raising prices too high or offering quality that is too low?
the government
competition
the benevolence of the supplier
In a market economy, how does the self-interest of producers work to the consumers' advantage?
In the desire to earn a profit, producers must produce goods and services that are of value to consumers, as all exchange is voluntary.
Producers are greedy, profit-driven entities that do not care about the desire of consumers.
If producers are not producing what consumers want, the government will step in and mandate production levels and prices.
Private ownership
permits owners to do anything they want with their property.
permits anyone to use the property with or without permission, compensation or consideration for the owner
permits owners to buy, sell and derive income from their property.
provides owners with little incentive to conserve for the future.
