Econ Unit 3 Topic 2

Which of the following market structures is characterised by a large number of small firms, identical products, and easy entry and exit?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

What is the primary purpose of government intervention in markets?

• To increase profits for businesses

• To ensure fair competition and protect consumers

• To eliminate all forms of trade

• To reduce government revenue

Which of the following best describes the concept of consumer behaviour in economics?

• The study of how consumers allocate their resources

• The analysis of government spending

• The examination of business production processes

• The evaluation of international trade policies

What is a key benefit of international trade for countries?

• Increased isolation from global markets

• Access to a wider variety of goods and services

• Decreased competition in domestic markets

• Reduced economic growth

Which of the following is an economic indicator used to measure the overall economic performance of a country?

• Gross Domestic Product (GDP)

• Consumer Preferences

• Market Share

• Brand Loyalty

What is the primary goal of international free trade agreements?

• To increase tariffs on imported goods

• To restrict the flow of goods and services

• To reduce barriers to trade between countries

• To promote domestic monopolies

The balance of payments is a record of all economic transactions between:

• Two individuals

• A country and the rest of the world

• Two companies

• Two government agencies

Which of the following is an example of trade protectionism?

• Eliminating tariffs on imports

• Subsidising domestic industries

• Promoting free trade agreements

• Encouraging foreign investment

In a monopolistic competition market structure, firms differentiate their products through:

• Price only

• Product features, branding, and advertising

• Government regulations

• Quantity of production

Which of the following is a common tool used by governments to intervene in markets?

• Price floors and ceilings

• Consumer surveys

• Business mergers

• International trade agreements