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Question 1:

A key characteristic of a 'Monopoly' is:

Perfect information Many sellers competing in the market No control over prices Barriers to entry that prevent competition

Question 2:

The concept of elasticity of demand is important for businesses because it helps them:

Predict changes in supply Evaluate the impact of advertising Determine pricing strategies Estimate the cost of production

Question 3:

'Economic Profit' in the long run in a perfectly competitive market is:

Constant regardless of market conditions Positive Negative Zero

Question 4:

One of the main reasons for the existence of a 'Monopoly' is:

Perfect information Easy entry and exit from the market A large number of sellers Control over a key resource

Question 5:

'Monopolistic Competition' differs from 'Perfect Competition' primarily because of:

Absence of barriers to entry Homogeneous products Product differentiation A large number of sellers

Question 6:

'Globalization' has led to:

Less cultural exchange Decreased movement of people and capital Reduced international cooperation Greater integration of global markets

Question 7:

In an 'Oligopoly', the actions of one firm:

Are independent of other firms Have no impact on other firms Are always in cooperation with other firms Can significantly affect the actions and profits of other firms

Question 8:

Consumer's surplus can be best described as:

The difference between what consumers are willing to pay and what they actually pay The additional satisfaction from consuming one more unit The difference between total utility and marginal utility The surplus of goods in the market

Question 9:

'Economic Liberalization' typically involves:

Increasing government control over the economy Restricting international trade Promoting state-owned enterprises Reducing government regulations and barriers to trade

Question 10:

'Price Discrimination' is a practice more commonly associated with:

Homogeneous product markets Oligopoly Perfect competition Monopoly and monopolistic competition

Quiz: Business Economics