Select the radio button corresponding to your choice of answer for each question, and then click on ‘Submit Answers’ to find out how many you answered correctly.

1			The term market structure generally refers to each of the following characteristics of a market, EXCEPT:
			A)	the number of buyers and sellers in the market
			B)	the percentage of sales accounted for by a small number of buyers
			C)	the range of products available in the market
			D)	the extent of collusion in the market
2			Which of the following is NOT a requirement for a perfectly competitive market?
			A)	there is a large number of buyers and sellers
			B)	there is freedom of entry to the market
			C)	there is freedom of exit from the market
			D)	products are designed to perfectly meet the needs of individual buyers
3			Which of the following markets is LEAST likely to be characterised as perfectly competitive?
			A)	wholesale fruit and vegetables
			B)	shampoo
			C)	stock markets
			D)	‘spot’ market for oils
4			Demand refers to:
			A)	underlying consumer needs
			B)	ability and willingness to buy a product at a given price
			C)	desire to buy a product at a given price
			D)	wants
5			A shift to a higher demand curve may occur for any of the following reasons, EXCEPT:
			A)	increasing household incomes
			B)	increasing price of substitute products
			C)	increasing popularity of the product
			D)	increasing popularity of substitute products
6			A supply curve shows price on the vertical axis and volume on the horizontal. A shift to a lower supply curve could be caused by any of the following factors, EXCEPT:
			A)	increased taxes on production
			B)	lower taxes on production
			C)	falling wage rates
			D)	additional subsidies from government
7			Which of the following products is likely to have the greatest price elasticity of demand?
			A)	exotic vegetables
			B)	tinned vegetables
			C)	frozen vegetables
			D)	fresh vegetables
8			Demand elasticity can be measured with respect to:
			A)	household income
			B)	the price of substitutes
			C)	customer service levels
			D)	all of the above
9			Which of the following is the best example of an ’inferior’ good?
			A)	pawn broking services
			B)	the Daily Star newspaper
			C)	Coca-Cola
			D)	cigarettes
10			The use of bartering and auctions essentially leaves price determination to:
			A)	the power of the auctioneer
			B)	the power of the seller
			C)	the power of the buyer
			D)	the relative market power of buyer and seller