Lesson 2.3.1

2.3.1 Price Quiz: NCFE Business & Enterprise, Unit 2

20 questions · by Revision Ninja

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This free Price quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 2: Marketing. It covers lesson 2.3.1, Price, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. A baker spends £1 on ingredients for a loaf and charges shoppers £3. Which figure is the selling price?

    • £2.00
    • £4.00
    • £1.00
    • £3.00

  2. Why do businesses add a mark-up when they set a selling price?

    • To make sure each sale brings in a profit
    • To work out the total cost of making each unit
    • To work out how much VAT to add to the price
    • To match the price charged by competitors

  3. In a market, what happens at the price equilibrium point?

    • Demand and supply are equal at that price
    • Demand is greater than supply at that price
    • The price is the lowest a seller will accept
    • Supply is greater than demand at that price

  4. What does the law of supply state?

    • As price rises, the quantity supplied rises
    • As price rises, the quantity demanded rises
    • As price rises, the quantity demanded falls
    • As price rises, the quantity supplied falls

  5. A shop has a large amount of unsold stock left at the end of the season. What has caused this surplus?

    • Customers demanded more units than the shop could supply
    • The shop priced the stock below equilibrium
    • The shop supplied more than customers demanded
    • The shop's costs rose above its selling price

  6. A new games console launches at £600, then drops to £400 a year later. Which strategy is this?

    • Price skimming
    • Cost-plus pricing
    • Penetration pricing
    • Competitive pricing

  7. A taxi app raises its fares automatically whenever demand is high. What is a drawback of this dynamic pricing?

    • Customers may feel exploited and go elsewhere
    • Fares can no longer be lowered when demand falls
    • Fares must be matched to those of rivals
    • Profit margins fall whenever demand is high

  8. A furniture maker finds a chair costs £40 to make, adds 30% and sells it for £52. Which strategy is this?

    • Price skimming
    • Penetration pricing
    • Cost-plus pricing
    • Dynamic pricing

  9. A new cereal brand goes on sale at a very low price. What is penetration pricing meant to achieve?

    • Fast sales growth and a share of the market
    • Quick recovery of research and development costs
    • A high profit margin on every packet sold
    • A reputation as a premium brand worth paying more for

  10. Two rival supermarkets keep cutting prices to undercut each other. Which strategy has caused this price war?

    • Price skimming
    • Cost-plus pricing
    • Competitive pricing
    • Penetration pricing

  11. A shop works out a selling price for a product. What does that price normally have to include?

    • The cost of supplying the item, with nothing added.
    • The cost of supplying the item plus a profit margin.
    • The price a rival charges, whatever it costs to supply.
    • The fixed costs of the shop, but not the variable costs.

  12. According to the law of supply, what happens as the market price of a good rises?

    • Producers choose to supply a smaller quantity.
    • Consumers are willing to buy a larger quantity.
    • Suppliers cut output to keep the price high.
    • Producers are willing to supply a larger quantity.

  13. In a market, what is meant by the equilibrium price?

    • The price a government sets to cap the cost of essentials.
    • The highest price the market will bear for the product.
    • The price where quantity demanded equals quantity supplied.
    • The price at which a firm exactly covers its total costs.

  14. Why might a train company use dynamic pricing?

    • It sets a price that covers costs plus a fixed mark-up.
    • It can charge more when demand for seats is high.
    • It matches the fare charged by rival operators.
    • It protects a premium brand image with a high fare.

  15. What is a drawback of using cost-plus pricing?

    • The firm may be dragged into a price war with rivals.
    • Rivals can undercut a high launch price and take share.
    • The price set may fail to cover the firm's total costs.
    • The price set may ignore what the market will pay.

  16. A tech firm launches a gadget at a high price, then lowers it over time. Why?

    • To draw shoppers in and sell them higher-margin products.
    • To recover development costs from early keen buyers.
    • To win the largest possible share of the market fast.
    • To keep the price in line with what rivals already charge.

  17. What is the main aim of penetration pricing?

    • To sit in line with the prices rivals charge.
    • To earn a high profit margin on each early sale.
    • To sell one item cheaply to pull buyers into the store.
    • To attract customers quickly and build market share.

  18. A supermarket sells bread below cost. How does it hope to profit?

    • By claiming the loss back from the bread supplier.
    • By raising the bread price again after a few weeks.
    • By charging a higher price online than in the store.
    • By selling shoppers other items at a normal margin.

  19. Why might a petrol station match the price charged by the garage over the road?

    • Drivers compare prices easily, so it would lose sales.
    • It hopes to skim early buyers with a high price.
    • Firms are required by law to charge a similar price.
    • A matched price still covers its costs plus a mark-up.

  20. A clothes shop runs a half-price sale every month. Why can this damage profits?

    • Customers come to expect discounts and delay buying.
    • The shop's fixed costs rise each time it holds a sale.
    • Suppliers charge the shop more when sales are high.
    • The sale price sets a new equilibrium for the market.