6. What are the conditions of a competitive market?
Lots of producers, low market share
Few producers, low market share
Lots of producers, high market share
7. Which of these is an inactive labour supply?
Unemployed people
Short term sick
Unpaid workers (volunteers)
Those on government schemes
Employees
8. What is demand for labour dependent on?
Demand for goods and services
Supply of labour
Prices of goods and services
9. Which of these is NOT an impact of low competition on producers?
Can use profits to innovate (improve/change)
Can set price limits to prevent unreasonable prices
Make large profits
Can produce cheaper
10. Why do oligopolies not use non-price competition?
Smaller firms would overtake larger firms
It could lead to a price war
It could lead to a wage-price spiral
11. Non-competitive markets are bad for consumers, because...
Their prices are lower
It can lead to inefficiencies
They have higher innovation
The environment is elastic
12. Which of these is NOT an impact of low competition on consumers?
Higher tax revenue
Higher prices charged
No drive for businesses to improve quality of innovation
Little choice
13. Which of these is a reason why oligopolies have high control over consumers?
High prices
Brand loyalty
Low barriers to entry
14. What is the difference between wages and salary?
Wages are a variable, hourly rate paid to workers, whereas a salary is a set amount paid to a worker for the year regardless of the number of hours spent working
Salaries are a variable, hourly rate paid to workers, whereas a wage is a set amount paid to a worker for the year regardless of the number of hours spent working
A salary is the total number of wages paid per day
15. Which of these is NOT a barrier to entry of a monopoly?
Control over physical resources
Artificial barriers
Legal barriers
Trademark and copyright protection
Economies of scale (natural monopoly)
16. Differentiation in non-competitive markets is...
Low
High
17. The environment is __, because there is subtle differentiation between products
