Lesson 3.1.1

3.1.1 The market, market size and growth Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.1.1, The market, market size and growth: 20 multiple choice questions for the OCR Business (H431), Unit 3: External influences, written with Revision Ninja.

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The 20 questions

  1. What term describes the total value or volume of sales in a specific market?

    • Market segment
    • Market growth
    • Market size
    • Market share

  2. Which type of market targets a large population with unsegmented, standardized products?

    • Niche market
    • Local market
    • Mass market
    • Dynamic market

  3. Total market sales are £10 million. Firm A has sales of £2 million. What is Firm A’s market share?

    • 20%
    • 50%
    • 5%
    • 2%

  4. A market grew from £50 million to £55 million. What is the market growth rate?

    • 10%
    • 11%
    • 90%
    • 5%

  5. What is the term for a small, specialised segment of a larger market?

    • Mass market
    • Niche market
    • Primary market
    • Secondary market

  6. A bakery sells gluten-free, vegan cakes to local consumers. Which market type is this targeting?

    • Niche market
    • Saturated market
    • Mass market
    • Secondary market

  7. What does measuring market size by volume specifically count?

    • Total revenue
    • Units sold
    • Market percentage
    • Profit margin

  8. What does measuring market size by value specifically record?

    • Customer numbers
    • Units produced
    • Profit margin
    • Total revenue

  9. Bus companies competing with train operators for city commuters is an example of what competition type?

    • Monopoly
    • Direct competition
    • Collusive competition
    • Indirect competition

  10. What term describes a rapidly changing market environment with continuous innovation and evolving customer needs?

    • Static market
    • Saturated market
    • Stable market
    • Dynamic market

  11. A market grows in size, but a business's sales remain constant. What happens to its market share?

    • Increases
    • Stays the same
    • Doubles
    • Decreases

  12. Dividing a market into distinct consumer groups based on age, income, or gender is known as what?

    • Behavioural segmentation
    • Psychographic segmentation
    • Demographic segmentation
    • Geographic segmentation

  13. A company targets consumers based on lifestyle, values, and personality traits. Which segmentation method is this?

    • Geographic
    • Behavioural
    • Demographic
    • Psychographic

  14. Firm X sales are £3 million in a £15 million market. What is Firm X’s market share?

    • 15%
    • 20%
    • 25%
    • 30%

  15. What is a major financial risk associated with operating exclusively in a niche market?

    • High direct competition
    • Limited scale economies
    • Excess market demand
    • Low profit margins

  16. What term describes a market with minimal growth, fixed demand, and low levels of innovation?

    • Niche market
    • Growth market
    • Dynamic market
    • Static market

  17. Coca-Cola and Pepsi competing directly for cola consumers is an example of what type of competition?

    • Monopsony
    • Monopoly
    • Indirect competition
    • Direct competition

  18. Operating within a large mass market primarily helps a business achieve which cost advantage?

    • Lower tax rates
    • Economies of scale
    • Reduced wage bills
    • Eliminated fixed costs

  19. Total market volume increased from 200,000 to 250,000 units. What is the percentage growth rate?

    • 20%
    • 50%
    • 5%
    • 25%

  20. Which external factor is most likely to transform a static market into a dynamic market?

    • Predictable demographics
    • Stable interest rates
    • Fixed cost structures
    • Technological innovation

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