1.
In 2011 the combined market share of Tesco, ASDA, Sainsbury's and Morrisons supermarkets was 75%.
This is best described as:
A. 
B. 
C. 
Monopolistically competitive
D. 
2.
Lloyds TSB Bank plc advises its business customers to prepare a contingency plan.
Which one of the following is most likely to reduce uncertainty for a business?
A. 
B. 
C. 
D. 
3.
Amazon, iTunes and Argos are all online retailers that stock a wide range of products.
An increase in online retailing has led to a decrease in
A. 
B. 
C. 
D. 
4.
British Airways (BA) advertises using media such as TV and national newspapers.
This policy helps to spread some of BA's fixed costs.
This is best described as
A. 
Purchasing economies of scale
B. 
C. 
Managerial economies of scale
D. 
Marketing economies of scale
5.
In March 2011, the retailer Poundland reported a record annual turnover of
£642m which was a 26% rise on 2010 – at a time when consumers’ real incomes
were falling.
This suggests that Poundland sells
A. 
B. 
C. 
D. 
6.
Siemens AG had a turnover of nearly £60 billion in 2011. Siemens’ operations are
based on an empowerment culture called People Excellence.
Greater empowerment is most likely to result in
A. 
Closer supervision of the workforce
B. 
Less worker participation in decision making
C. 
Increases in productivity
D. 
7.
In 2009, the UK home DIY (Do-It-Yourself) market was dominated by businesses
such as Homebase, B&Q and Focus who between them had over 50% of the total
market.
This market is best described as
A. 
B. 
C. 
Monopolistically competitive
D. 
8.
In 2009, a number of policies were introduced in order to stimulate aggregate
demand within the UK economy.
Which one of the following policies is least likely to increase aggregate demand?
A. 
An increase in government spending on public services
B. 
An increase in interest rates
C. 
A reduction in income tax
D. 
A reduction in corporation tax
9.
Nissan Motor Manufacturing UK Limited uses Just in Time (JIT) stock management
in its plant near Sunderland.
Just in Time (JIT) stock management is most likely to result in
A. 
A decreased need for employee training
B. 
Increased product defects
C. 
D. 
A reduction in capital tied up in stock
10.
In August 2009, the exchange rate of pound sterling (£) against the US dollar ($)
was £1= $1.70. By January 2010, it had depreciated to £1= $1.60.
This will result in
A. 
US dollars becoming cheaper in terms of pound sterling
B. 
UK imports from the USA becoming cheaper
C. 
US dollars becoming dearer in terms of pound sterling
D. 
UK exports to the USA becoming dearer
11.
In 2007, the food retailers in the Co-operative Group (Co-op) became one single
business with its headquarters in Manchester.
Having a centralised organisational structure is least likely to lead to
A. 
Senior managers having greater control over the organisation
B. 
The use of standardised procedures
C. 
Less duplication of functional areas such as purchasing
D. 
Greater empowerment of employees
12.
Charles Tyrwhitt is known for its high quality men’s shirt brand in Britain. In 2009,
the company had a turnover of £65 million in a profitable niche selling exclusive
office wear.
Operating in a niche market is most likely to lead to
A. 
B. 
C. 
D. 
13.
Which one of the following businesses is most likely to be associated with
Structural Unemployment in the UK?
A. 
B. 
C. 
D. 
14.
Which one of the following is most likely to cause firms like Cadbury to decrease
the amount of investment they undertake?
A. 
A fall in business confidence
B. 
A rise in consumer demand
C. 
D. 
A fall in corporation tax
15.
Which one of the following is most likely to cause firms like Cadbury to decreasethe amount of investment they undertake?
A. 
A fall in business confidence
B. 
A rise in consumer demand
C. 
D. 
A fall in corporation tax
16.
The ability of a business such as housebuilder Barratt Homes to use its larger sizeto negotiate better terms with its suppliers of raw materials is an example of
A. 
B. 
Technical economies of scale.
C. 
Marketing economies of scale.
D. 
Purchasing economies of scale.
17.
If an increase in a consumer’s income causes the consumer to decrease thequantity demanded of baked beans, then baked beans might best be described as
A. 
B. 
C. 
D. 
18.
Tesco PLC has a flat organisational structure across its stores in the UK. Tescomanagers typically delegate responsibility.The degree of delegation within Tesco is most likely to rise following an increasein
A. 
B. 
C. 
D. 
19.
Lean management at the car manufacturer Jaguar is most likely to lead to
A. 
B. 
C. 
D. 
20.
Which of the following is most likely to increase the demand for DVD players?
A. 
B. 
A fall in the price of a substitute good
C. 
A fall in the price of a complementary good
D. 
A fall in the population size
21.
If there are high barriers to entry in an industry such as banking it is likely that there will be
A. 
B. 
C. 
D. 
22.
During a recession which of the following businesses is least likely to suffer a fall in sales?
A. 
B. 
C. 
D. 
A fashionable clothes shop
23.
In a perfectly competitive market you would expect to find all of the following except
A. 
B. 
Many buyers and many sellers.
C. 
D. 
24.
The boom phase of the economic cycle is most likely to be associated with
A. 
A fall in interest rates.
B. 
C. 
D. 
25.
An increase in consumer knowledge is likely to see an increase in all of the following except
A. 
B. 
C. 
D.