LAP EC 912

Which of the following is one of the main principles of the private enterprise system?

• Monopolies

• Competition

• Price fixing

• Exclusive agreements

Burger King and McDonald's are examples of

• Regulated monopolies

• Dissimilar firms

• Unrelated businesses

• Direct competitors

If a consumer chooses to go to the movies rather than to a pizza parlor, then the movie theater and the pizza parlor are

• Direct competitors

• Engaged in prospecting

• Indirect competitors

• Engaged in price competition

Most businesses put their greatest competitive efforts into competing

• Locally

• With direct competitors

• Nationally

• With indirect competitors

An electronics store charges less for a new television than other electronics stores. The store is engaging in __________ competition.

• Price

• Unethical

• Nonprice

• Sales

When Maura purchased a new car, she was able to get part of the purchase price back from the car's manufacturer. The car's manufacturer engaged in

• Price fixing

• Clearance sales

• Nonprice competition

• Offering rebates

Offering high quality, large assortments, and free shipping are examples of

• Rebates

• Price fixing

• Nonprice competition

• Price competition

A business that advertises a special sale as well as its delivery service is using a combination of __________ competition.

• Price and nonprice

• Perfect and monopolistic

• Direct and indirect

• Local and national

Which of the following statements about perfect competition is correct:

• There is a limited supply of goods and services.

• Businesses have a good deal of control over the market.

• Products vary from seller to seller.

• It is used as a benchmark to compare real market structures against.

What type of market structure is most commonly found in a private enterprise economy?

• Perfect competition

• Oligopoly

• Regulated monopoly

• Monopolistic competition