1. Which feature of oligopoly is being assumed when the demand curve for an individual firm is as shown?

A price discrimination
B price leadership by the dominant firm
C interdependence between firms
D collusion between firms

2. The table provides data on the number and value of mergers in Europe and North America
between 2014 and 2017.

What can be deduced from the table?
A The average value of a merger in Europe was higher in 2017 than 2014.
B The difference in the number of mergers in Europe and North America was the same in 2014 and 2016.
C The value of mergers each year in US dollars was always lower in Europe.
D The number of mergers each year was always higher in Europe.

3. Charities distribute plastic bags to households that householders can fill with clothes they no longer want. The charities then collect them and sell the clothes to raise funds. Only one charity leaves a note thanking the householder for the donation.
What best describes this charity’s approach?
A game theory
B monopoly behaviour
C non-price competition
D nudge theory

4. What could prevent a market failure?
A barriers to entry
B building regulations
C growth of firms
D persuasive advertising

5. When will a society have achieved an equitable distribution of income?
A when all individuals have equal job opportunities
B when all workers are paid the same wages
C when the incomes within the society are equally distributed
D when the society believes that the distribution of income is fair