Lesson 3.3.1

3.3.1 Market forces Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.3.1, Market forces: 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 type of market allows transactions to occur purely online without a physical location?

    • Commodity market
    • Physical market
    • Non-physical market
    • Factor market

  2. In the UK, what minimum market share defines a legal monopoly?

    • 75%
    • 100%
    • 25%
    • 50%

  3. What is the term for a market structure dominated by a single seller?

    • Oligopoly
    • Pure monopoly
    • Duopoly
    • Monopolistic competition

  4. Which UK regulatory body investigates anti-competitive mergers and market dominance?

    • CMA
    • ASA
    • FCA
    • Ofcom

  5. What term describes two firms joining together by mutual agreement to form a new single business?

    • Merger
    • Acquisition
    • Strategic alliance
    • Demerger

  6. What term describes growth achieved internally by reinvesting profits into expanding current operations?

    • Conglomerate merger
    • Inorganic growth
    • Horizontal integration
    • Organic growth

  7. What cost, incurred when leaving a market, cannot be recovered by the business?

    • Variable cost
    • Sunk cost
    • Marginal cost
    • Opportunity cost

  8. Which market environment experiences rapid and continuous changes in customer needs and technology?

    • Niche market
    • Static market
    • Saturated market
    • Dynamic market

  9. A bakery opens an online store to reach national customers. What market type is this?

    • B2B market
    • Physical market
    • Non-physical market
    • Wholesale market

  10. A new supermarket faces high initial setup costs for premises and machinery. What is this obstacle?

    • Barrier to exit
    • Market failure
    • Barrier to entry
    • Sunk cost

  11. A car manufacturer buys a controlling share in a battery supplier. What growth strategy is this?

    • Organic growth
    • Acquisition
    • Franchising
    • Joint venture

  12. High redundancy payments prevent an unprofitable factory from closing down. What is this obstacle called?

    • Barrier to entry
    • Legal monopoly
    • Organic growth
    • Barrier to exit

  13. A local coffee shop faces three new global chains nearby. How will local competition likely respond?

    • Lowering prices
    • Stopping advertising
    • Increasing prices
    • Reducing quality

  14. A firm sells custom shoes where customers must try on physical sizes before buying. Which market suits best?

    • Digital market
    • Non-physical market
    • Physical market
    • E-commerce platform

  15. An app maker drops software prices due to cheaper overseas developers entering the sector. What force caused this?

    • Global competition
    • Government regulation
    • Organic growth
    • Market dominance

  16. A firm decides to leave a shrinking market with falling sales and rising losses. Why exit?

    • Strong dominance
    • High entry barriers
    • Low profitability
    • High market share

  17. Why might the CMA block a takeover between the two largest supermarkets in the UK?

    • Increases market competition
    • Encourages new entrants
    • Reduces consumer choice
    • Lowers inflation rates

  18. How does heavy regulation on market dominance primarily protect smaller competitor businesses?

    • Prevents predatory pricing
    • Eliminates exit barriers
    • Subsidises staff wages
    • Guarantees high profits

  19. What is a main operational risk for a business relying solely on non-physical online markets?

    • High retail rent
    • Store maintenance costs
    • Footfall decline
    • Cybersecurity threats

  20. How do existing firms with huge economies of scale create a strong barrier to entry?

    • Greater exit costs
    • Lower unit costs
    • Slower innovation
    • Higher profit margins

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