Grade 9-economics- 2nd term test -2017

1) Which of the following is not a method of measuring the size of a firm,

I. Turnover
II. Investment/capital employed
III. Number of people employed
IV. Location.
2) If EU defines the size of firms using turnover in millions as,
(small = 0-10 ,Medium =10-50 , large = 50)
Select the medium sized firm’s turnover,
I. €m 49
II. €m 2.5
III. €m 500
IV. €b 40
3) Which is a disadvantage of small firms?
I. Low cost
II. Easy to attract qualified staff.
III. Lack of finance
IV. Innovation.
4) One main disadvantage of being a large firm,
I. Economies of scale
II. Flexible management
III. Better communication
IV. High cost
5) Another name for diversifying merger is,
I. Lateral
II. Horizontal
III. Conglomerate
IV. Vertical.
6) Which is not a barrier to entry in a monopoly market?
I. Economies of scale
II. Legal barriers
III. Efficiency
IV. Cost barriers.
7) Which is an advantage of an oligopoly market?
I. Natural oligopoly
II. Price stability
III. Marketing barriers.
IV. More research and development.
8) Informal agreements between firms to restrict competition is,
I. Collusion
II. Cartels
III. Monopoly
IV. Duopoly
9) Firms making just enough money to satisfy the business owner is ,
 I. Profit maximization
II. Profit satisficing
III. Sales maximization
IV. Welfare maximization.
10) Which is not a reason for the government to influence the location of firms,
I. Reducing income inequality.
II. Reducing congestion
III. Reducing income equality
IV. Reducing unemployment.

(20marks)

1)
1. Briefly explain the methods of measuring the size of the firm.
2. State few advantages of a firm being small.
3. McDonalds is a multinational company reputed for offering high quality food and
beverages.it has outlets running worldwide.
I. State the advantages McDonalds might have being a large firm.
II. What are the problems it might be facing when compared to a local
restaurant ?
4. Explain why customers might prefer McDonalds over a local restaurant.
(20marks)

2)

1. List the main motives of growth in a firm.

2. State and explain briefly the four methods of merging of firms.
3. Define external growth and internal growth of firms.
4. State few limitations of growth.
5. What is a monopoly? Explain any one barrier to enter a monopoly market.
6. Explain how consumers can be exploited in a monopoly market.
(20marks)

3)

1. What is meant by Oligopoly? State 4 features of it

2. define ‘’collusion ‘’ and ‘’cartels’’.

3.what are the 3 main ways in which government can promote competition?

4.state 1 function each of,

I. The Office of Fair Trade.

II. The Competition Commission.
5. State few anti-competitive practices.
 6. Why does the government influence the location of firms?
7. State few methods government uses to influence the location of firms.
(20 marks)

4)

1. what are the 3 main types of private organizations?

2.what are the aims of the private sector? Explain any 2 briefly.

3.what are the aims of the public sector

4.define ‘dividends’ and ‘stakeholder’.

5.state 2 advantages and disadvantages of oligopoly.

(20marks)