In a market economy, what determines the prices of goods and services?

• Government regulations
• Supply and demand
• Central planning
• The number of businesses in the industry

A store earns revenue of £5,000 per month. The fixed costs are £2,000, and the variable costs per item sold are £10. How much profit does the store make if they sell 300 items?

• £0
• £3,000
• £7,000
• £10,000

The selling price of a bicycle is £200, and the fixed costs for the company are £10,000 per month. The variable cost to produce one bicycle is £80. Calculate the profit the company makes when it sells 150 bicycles in a month.

• £8,000
• £12,000
• £12,000
• £16,000

Which of the following is not a factor of production?

• Enterprise
• Capital
• Land
• Law

What is meant by a "business aim"?

• A specific target
• A positive net profit
• A general goal
• Improved revenue

Which of the following is a service?

• Paying an influencer to promote your product
• Buying a cake from a bakery
• Paying a supplier for raw materials
• Buying a coat from a market trader

Which of the following is an example of a fixed cost for a business?

• Employee salaries
• Raw materials
• Shipping costs
• Overtime wages

Which expansion activity is classed as "internal"?

• Buying a competitor
• Being acquired by a larger competitor
• Conglomerate integration
• Opening a new store

Sarah sells glasses of lemonade for £2. Her fixed costs are £20 for the day, and her variable cost per glass is £1. What is her profit after selling 50 glasses of lemonade?

• £8
• £18
• £30
• £70

Which of the following is a factor that affects a business's choice of location?

• The legal structure of the organisation
• The location's proximity to competitors
• The business's advertising strategy
• The size of the business's logo