Competition & the Environment

Question 1

What is perfect competition?

Answer 1

Market with lots of sellers.

Question 2

What is a monopoly?

Answer 2

Market dominated with one seller.

Question 3

What are patents?

Answer 3

Rights to use of an invention for a number of years.

Question 4

What is a market share?

Answer 4

% of total sales accounted for by one firm.

Question 5

What is a monopolist?

Answer 5

Firm that accounts for at least 25% of market share.

Question 6

What is privatisation?

Answer 6

Public corporations sold to private owners.

Question 7

What is a cartel?

Answer 7

A group of firms working to fix prices.

Question 8

Give five ways competition in a market can be increased.

Answer 8

• New firms entering the market.
• Privatisation
• Selling new products
• Cutting prices
• Increasing advertising

Question 9

Give five ways competition in a market can be decreased.

Answer 9

• Take over/Merger
• Using the marketing mix
• Taking out a patent
• Collusion
• Internal growth

Question 10

What is child labour?

Answer 10

Use of young children for low cost production.

Question 11

What are ethics?

Answer 11

What is morally correct and wrong.

Question 12

What are human rights?

Answer 12

The concept that people should have basic rights and freedom.

Question 13

What are sweat shops?

Answer 13

Factories where people work excessively.

Question 14

What is pirating?

Answer 14

Illegally copying of films and music.

Question 15

What is an ethical business?

Answer 15

Businesses that behave morally correctly.

Question 16

What are non-renewable resources?

Answer 16

Resources that can only be used once.

Question 17

What are carbon emissions?

Answer 17

CO2 released into the atmosphere.

Question 18

What is global warming?

Answer 18

Rise in average temperature of the atmosphere.

Question 19

What does the term green mean?

Answer 19

Consumers and businesses that make production sustainable.

Question 20

What are renewable resources?

Answer 20

Resources which are reusable.

Question 21

What is sustainable production?

Answer 21

Production involving use of renewable and recycled resources.

Question 22

What are carbon permits?

Answer 22

Permits which allow businesses to produce certain amounts of CO2.

Question 23

Give four social costs of production.

Answer 23

• Using up non-renewable resources.
• Spoiling the landscape.
• Causing congestion on roads.
• Causing pollution.

Question 24

Give five ways in which businesses can become more sustainable.

Answer 24

• Switching off lights.
• Proper disposal of waste.
• Using recyclable materials.
• Encouraging staff to use public transport.
• Using renewable power resources.