Economics Quiz on Competition

In Abu Dhabi, many farmers grow and sell dates. Why can no single farmer set the price?

• Because the government sets the price

• Because many farmers sell the same product

At the Dubai Fish Market, fishermen sell fresh fish daily. Why do they accept the market price?

• If they charge more, customers will buy from others

• Customers prefer buying from large companies

What is the best example of perfect competition in the UAE?

• Etisalat and Du selling phone services

• Small perfume shops in Deira selling similar products

Why do small grocery stores (baqalas) in Dubai have little control over prices?

• Because they are owned by one company

• Because there are too many stores selling similar products

A farmer in Al Ain sells cucumbers at the same price as other farmers. What does this mean?

• He is a price taker in a competitive market

• He has no customers

Why do sellers at the Dubai Gold Souk compete mostly on service rather than price?

• Because the price of gold is fixed by the global market

• Because they have no competition

Which of the following is NOT a characteristic of a perfectly competitive market?

• Many small sellers

• High barriers to entry

In Ras Al Khaimah, many small pottery makers sell similar clay pots. What will happen if one seller raises the price?

• Customers will buy from other sellers

• The government will set a new price

If all farmers in Fujairah grow the same type of vegetable, what happens to prices when many farmers enter the market?

• Prices will fall

• Prices will stay the same

Which of these businesses is NOT in a perfectly competitive market?

• A local honey farm selling honey in Sharjah

• Emirates Airlines selling plane tickets