Component 1 Review

The role of an enterprise mission and vision is to align all work toward meeting and surpassing customer expectations. With the customer at the center, the end result should...

• be to create an ambitious set of goals for the team and people involved.

• always deliver satisfactory advice to the customer for improving their design.

• have the manufacturer insist the customer pay for the actions of the manufacturing system.

• contribute something of value to the customer.

Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition?

• In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition.

• In perfect competition there are many firms, but in monopolistic competition there are only a few firms.

• In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product.

• In perfect competition there are few consumers, but in monopolistic competition there are many consumers.

Which of the following market structures results in allocative efficiency? 

• Monopoly
• Monopolistic Competition
• Perfect Competition
• Oligopoly

Which of the following are external stakeholders (2 answers)

• Employees

• Suppliers

• Government

• Owners

A few large businesses operate in ........ what type of business market?

• Monopoly

• Oligopoly

• Perfect competition

• Competitive environment

Where there is one dominant business in a market it is kown as a

• Oligopoly

• Monopoly

• Perfect Competition

• Monopolistic competition

The total value or quantity of demand in a market in known as...

• Market Share

• Market Trend

• Market Size

• Market Population

Market segmentation is.......

• Interpreting the market in which a business operates

• The different degrees of competition in a market

• The consumer protection laws

• Dividing a market into smaller groups of customers who have similar needs

Which of these statements is incorrect......

• Normal goods have a positive income elasticity of demand

• Inferior goods have a negative income elasticity of demand

• As income rises consumers buy less of the luxury items

• Neccesity goods are price inelastic

The banking industry is in which sector?

• Primary

• Secondary

• Tertiary