Economics Quiz- spring mid-term

What is the main reason governments regulate competition?

• To increase tax revenue

• To protect consumer interests

• To support large businesses

• To control international trade

Which of the following is NOT a way to measure the size of a company?

• Number of employees

• Total revenue

• Color of the company logo

• Balance sheet total

What is the main advantage of large firms for production costs?

• Higher wages

• Economies of scale

• More innovation

• Personal service

Which of the following is a disadvantage of small firms?

• Flexibility

• Lower costs

• Difficulty in accessing finance

• Personal service

What is the main reason governments might block mergers between large firms?

• To increase tax revenue

• To promote competition

• To protect small businesses

• To encourage innovation

Which of the following is a way that firms can spread risk?

• Focusing on one product

• Operating in multiple countries

• Reducing the number of employees

• Increasing prices

What is a key feature of a monopoly?

• Many firms in the market

• Unique product with no close substitutes

• Low barriers to entry

• Price taker

Which of the following is NOT a barrier to entry?

• Legal barriers

• Patents

• High start-up costs

• High demand for the product

What does a patent do?

• Allows firms to copy ideas freely

• Prevents firms from copying ideas or technology

• Reduces start-up costs

• Increases competition

What is the demand for labour in a business?

• The number of workers who want a job

• The number of workers a business wants to hire

• The wages paid to workers

• The skills of workers