Lesson 4.1.8.7
4.1.8.7 Competition policy Quiz: AQA Economics, Unit 1
20 questions
In partnership with Revision Ninja
Lesson 4.1.8.7, Competition policy: 20 multiple choice questions for the AQA Economics (7136), Unit 1: Individuals, firms, markets and market failure, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
What is the main objective of UK competition policy?
- Reduce trade deficits
- Protect domestic monopolies
- Protect consumer welfare
- Maximise tax revenue
-
Which organisation is the principal statutory UK competition authority?
- Competition and Markets Authority
- Financial Conduct Authority
- Prudential Regulation Authority
- Bank of England
-
Which practice is a primary target of competition policy due to price-fixing?
- Natural monopoly
- Cartel collusion
- Product innovation
- Price differentiation
-
Selling below average variable cost to force rivals out of business is called what?
- Cost-plus pricing
- Price discrimination
- Predatory pricing
- Limit pricing
-
Why do competition authorities investigate proposed corporate mergers?
- Prevent market dominance
- Increase corporate profits
- Raise business taxation
- Encourage price wars
-
Which potential downside is associated with enforcing competition policy?
- Higher consumer surplus
- Greater price competition
- Regulatory costs
- Increased market entry
-
What is a key benefit of effective competition policy for consumers?
- Reduced product choice
- Lower prices
- Higher entry barriers
- Increased market power
-
Which EU treaty articles prohibit anti-competitive agreements and abuse of market dominance?
- Articles 101 and 102
- Articles 45 and 49
- Articles 107 and 108
- Articles 50 and 51
-
Two firms with 60% and 25% market shares propose merging. What is the main concern?
- Diseconomies of scale
- Excessive market power
- Lower overall prices
- Increased market entry
-
What anti-competitive practice occurs when a dominant firm denies essential inputs to rivals?
- Vertical integration
- Refusal to supply
- First-degree discrimination
- Non-price competition
-
Blocking mergers to maintain competition can prevent firms from achieving what benefit?
- Economies of scale
- Allocative inefficiency
- X-inefficiency
- Predatory prices
-
A formal collusive agreement between competing firms to fix prices is called what?
- Consortium
- Cartel
- Monopsony
- Duopoly
-
In UK competition policy, a firm with substantial market power is described as what?
- Contestable
- Competitive
- Monopsonistic
- Dominant
-
If firms with 40% and 30% market shares merge, what is their combined market share?
- 60%
- 50%
- 70%
- 80%
-
Why might a competition authority approve a merger that reduces market competition?
- Efficiency gains
- Higher entry barriers
- Increased monopoly power
- Higher consumer prices
-
Which organisation is primarily responsible for enforcing UK competition policy?
- Competition and Markets Authority
- Office of Fair Trading
- Competition Commission
- Monopolies Commission
-
Splitting up a natural monopoly can increase average costs due to the loss of what?
- Economies of scale
- Price discrimination
- Dynamic efficiency
- External benefits
-
UK competition policy assesses anti-competitive conduct primarily on a case-by-case basis evaluating impact on what?
- Government tax receipts
- Employee wage levels
- Competition and consumers
- Foreign export volumes
-
What policy measure is usually imposed on firms caught operating a price-fixing cartel?
- Complete nationalisation
- Compulsory liquidation
- Guaranteed subsidies
- Financial fines
-
When reviewing a proposed merger, competition authorities weigh increased market power against potential gains in what?
- Exchange rates
- Economic efficiency
- Inflation rates
- Tax revenue
Related quizzes
- Economic methodology Quiz · 4.1.1.1 · 20 questions
- The nature and purpose of economic activity Quiz · 4.1.1.2 · 20 questions
- Economic resources Quiz · 4.1.1.3 · 20 questions
- Scarcity, choice and the allocation of resources Quiz · 4.1.1.4 · 20 questions
- Production possibility diagrams Quiz · 4.1.1.5 · 20 questions
- Consumer behaviour Quiz · 4.1.2.1 · 20 questions
- Imperfect information Quiz · 4.1.2.2 · 20 questions
- Aspects of behavioural economic theory Quiz · 4.1.2.3 · 20 questions
- Behavioural economics and economic policy Quiz · 4.1.2.4 · 20 questions
- The determinants of the demand for goods and services Quiz · 4.1.3.1 · 20 questions