What is the primary objective of UK competition policy?
A) To protect domestic industries
B) To promote fair trade practices
C) To regulate international trade
D) To encourage monopolies
Answer: B) To promote fair trade practices
Which government agency is responsible for enforcing competition law in the UK?
A) Office of Fair Trading (OFT)
B) Department for Business, Energy & Industrial Strategy (BEIS)
C) Competition and Markets Authority (CMA)
D) Trade Standards Agency (TSA)
Answer: C) Competition and Markets Authority (CMA)
The UK competition law is based on:
A) The Competition Act of 2000
B) The Monopolies and Restrictive Practices Act of 1948
C) The Trade Descriptions Act of 1968
D) The Copyright, Designs, and Patents Act of 1988
Answer: A) The Competition Act of 2000
What is the primary role of the Competition and Markets Authority (CMA)?
A) To promote monopolies
B) To regulate international trade
C) To enforce competition law and investigate anti-competitive practices
D) To provide subsidies to industries
Answer: C) To enforce competition law and investigate anti-competitive practices
Which type of anti-competitive behavior involves two or more companies cooperating to fix prices?
A) Collusion
B) Monopoly
C) Merger
D) Oligopoly
Answer: A) Collusion
What is the term for a company having a dominant position in a market that allows it to behave independently of competitors, customers, and ultimately consumers?
A) Oligopoly
B) Monopoly
C) Cartel
D) Merger
Answer: B) Monopoly
In the context of competition policy, what does “merger control” refer to?
A) The process of merging two government agencies
B) Regulating the use of trademarks in merged companies
C) Regulating mergers and acquisitions to prevent anti-competitive outcomes
D) Allowing companies to merge without restrictions
Answer: C) Regulating mergers and acquisitions to prevent anti-competitive outcomes
Which of the following is NOT a prohibited anti-competitive practice under UK competition law?
A) Price fixing
B) Abuse of a dominant market position
C) Exclusive distribution agreements
D) Predatory pricing
Answer: C) Exclusive distribution agreements
What is the term for the practice of selling goods or services below cost to drive competitors out of the market?
A) Price fixing
B) Predatory pricing
C) Collusion
D) Cartel behavior
Answer: B) Predatory pricing
Which competition policy principle seeks to prevent firms from abusing their dominant market position?
A) Merger control
B) Price discrimination
C) Abuse of dominance
D) Cartel behavior
Answer: C) Abuse of dominance
Which government agency investigates mergers to determine whether they may result in anti-competitive outcomes?
A) Office of Fair Trading (OFT)
B) Competition and Markets Authority (CMA)
C) Department for Business, Energy & Industrial Strategy (BEIS)
D) Trade Standards Agency (TSA)
Answer: B) Competition and Markets Authority (CMA)
What is the purpose of the “market investigation reference” power held by the Competition and Markets Authority (CMA)?
A) To regulate consumer prices
B) To investigate potential mergers
C) To investigate anti-competitive practices in a particular market
D) To facilitate international trade agreements
Answer: C) To investigate anti-competitive practices in a particular market
Under UK competition law, what is the term for a group of companies that collaborates to restrict competition?
A) Monopoly
B) Oligopoly
C) Cartel
D) Conglomerate
Answer: C) Cartel
What is the term for a situation in which a company sets different prices for the same product or service for different customers?
A) Price fixing
B) Predatory pricing
C) Price discrimination
D) Collusion
Answer: C) Price discrimination
Which government agency was responsible for competition policy enforcement before the establishment of the Competition and Markets Authority (CMA)?
A) Office of Fair Trading (OFT)
B) Department for Business, Energy & Industrial Strategy (BEIS)
C) Trade Standards Agency (TSA)
D) Department of Trade and Industry (DTI)
Answer: A) Office of Fair Trading (OFT)
What is the term for a situation in which a company holds a significant share of a particular market?
A) Cartel
B) Merger
C) Oligopoly
D) Market power
Answer: D) Market power
The “Groceries Code Adjudicator” is responsible for regulating the relationship between:
A) Manufacturers and retailers in the pharmaceutical industry
B) Suppliers and retailers in the grocery sector
C) Farmers and agricultural cooperatives
D) Energy producers and distributors
Answer: B) Suppliers and retailers in the grocery sector
Which competition policy principle seeks to prevent unfair pricing strategies by dominant firms that can harm competitors?
A) Price discrimination
B) Predatory pricing
C) Abuse of dominance
D) Price fixing
Answer: C) Abuse of dominance
The “Groceries Supply Code of Practice” aims to ensure fairness in the contractual relationships between:
A) Producers and consumers
B) Manufacturers and suppliers
C) Retailers and consumers
D) Suppliers and retailers in the grocery sector
Answer: D) Suppliers and retailers in the grocery sector
In the context of competition policy, what does the term “state aid” refer to?
A) Financial assistance provided to struggling industries by the government
B) Grants given to students by educational institutions
C) Investments made by private companies in the technology sector
D) Tax breaks for multinational corporations
Answer: A) Financial assistance provided to struggling industries by the government
What is the term for a situation in which two or more companies dominate a particular market?
A) Oligopoly
B) Cartel
C) Monopoly
D) Conglomerate
Answer: A) Oligopoly
Which competition policy principle seeks to prevent companies from agreeing on common business practices to reduce competition?
A) Price fixing
B) Predatory pricing
C) Collusion
D) Abuse of dominance
Answer: C) Collusion
The “Competition Act 1998” established the framework for modern competition law in the UK, including provisions related to:
A) Trade descriptions
B) Intellectual property rights
C) Consumer protection
D) Anti-competitive practices
Answer: D) Anti-competitive practices
Which of the following is a type of abuse of dominance?
A) Joint ventures
B) Exclusive distribution agreements
C) Price discrimination
D) Merger control
Answer: C) Price discrimination
What is the main purpose of competition policy in a market economy?
A) To eliminate competition
B) To promote monopolies
C) To regulate prices
D) To encourage competition and prevent anti-competitive practices
Answer: D) To encourage competition and prevent anti-competitive practices
The “Market Studies Regulations” empower the Competition and Markets Authority (CMA) to conduct studies into:
A) International trade agreements
B) Market practices that may distort competition
C) Taxation policies
D) Government subsidies to industries
Answer: B) Market practices that may distort competition
What is the term for a group of companies that collaborate to restrict competition by controlling prices and output?
A) Merger
B) Oligopoly
C) Cartel
D) Conglomerate
Answer: C) Cartel
Which government agency is responsible for ensuring fair trading practices in the UK?
A) Office of Fair Trading (OFT)
B) Department for Business, Energy & Industrial Strategy (BEIS)
C) Competition and Markets Authority (CMA)
D) Trade Standards Agency (TSA)
Answer: C) Competition and Markets Authority (CMA)
What is the term for a situation in which a company uses its market power to hinder the entry or expansion of other companies?
A) Market power
B) Predatory pricing
C) Abuse of dominance
D) Oligopoly
Answer: C) Abuse of dominance
Which competition policy principle seeks to prevent companies from engaging in unfair practices that distort competition?
A) Collusion
B) Price discrimination
C) Abuse of dominance
D) Monopoly
Answer: B) Price discrimination
What is the term for a situation in which there are only a few large firms dominating a particular market?
A) Monopoly
B) Oligopoly
C) Cartel
D) Conglomerate
Answer: B) Oligopoly
The “Market Abuse Regulation” aims to prevent:
A) Anti-competitive mergers
B) Unfair pricing practices
C) Abuse of dominance
D) Market manipulation and insider trading
Answer: D) Market manipulation and insider trading
Which type of anti-competitive behavior involves a single company exploiting its dominant market position?
A) Collusion
B) Oligopoly
C) Monopoly
D) Merger
Answer: C) Monopoly
The “Block Exemption Regulations” provide exemptions from certain competition law provisions for:
A) Small businesses only
B) All types of businesses
C) Large multinational corporations
D) State-owned enterprises
Answer: B) All types of businesses
What is the term for the practice of companies agreeing not to compete with each other in certain areas?
A) Collusion
B) Market power
C) Merger control
D) Cartel behavior
Answer: A) Collusion
Which government agency was responsible for enforcing competition law in the UK before the establishment of the Competition and Markets Authority (CMA)?
A) Office of Fair Trading (OFT)
B) Department for Business, Energy & Industrial Strategy (BEIS)
C) Trade Standards Agency (TSA)
D) Department of Trade and Industry (DTI)
Answer: A) Office of Fair Trading (OFT)
What is the term for a situation in which a company acquires one or more other companies to strengthen its market position?
A) Merger
B) Cartel
C) Oligopoly
D) Collusion
Answer: A) Merger
The “Market Investigations (Regulated Markets and Market Transparency) Regulations” empower the Competition and Markets Authority (CMA) to conduct investigations into:
A) International trade agreements
B) Market practices that may distort competition
C) Taxation policies
D) Government subsidies to industries
Answer: B) Market practices that may distort competition
What is the term for a situation in which a company controls all or most of the supply of a particular product or service?
A) Monopoly
B) Oligopoly
C) Cartel
D) Merger
Answer: A) Monopoly
The “Competition and Markets Authority” (CMA) is responsible for conducting in-depth investigations into:
A) Cartel behavior only
B) Merger control only
C) Anti-competitive practices and market investigations
D) Trade disputes between countries
Answer: C) Anti-competitive practices and market investigations
Which competition policy principle seeks to prevent companies from acquiring competitors to reduce competition?
A) Price discrimination
B) Predatory pricing
C) Collusion
D) Anti-competitive mergers
Answer: D) Anti-competitive mergers
What is the term for a company’s ability to influence market conditions and prices?
A) Cartel power
B) Market manipulation
C) Market power
D) Monopoly power
Answer: C) Market power
Which competition policy principle seeks to prevent companies from charging excessively high prices to consumers?
A) Collusion
B) Abuse of dominance
C) Predatory pricing
D) Price gouging
Answer: B) Abuse of dominance
What is the term for a situation in which a company acquires a competitor with a view to eliminating it from the market?
A) Merger
B) Predatory pricing
C) Cartel behavior
D) Collusion
Answer: A) Merger
Which government agency plays a role in ensuring compliance with the Groceries Supply Code of Practice?
A) Office of Fair Trading (OFT)
B) Department for Business, Energy & Industrial Strategy (BEIS)
C) Competition and Markets Authority (CMA)
D) Groceries Code Adjudicator
Answer: D) Groceries Code Adjudicator
Which type of anti-competitive behavior involves misleading consumers about the price or characteristics of goods or services?
A) Collusion
B) Price discrimination
C) Misleading advertising
D) Predatory pricing
Answer: C) Misleading advertising
What is the term for a situation in which a company acquires another company that produces complementary products?
A) Conglomerate
B) Oligopoly
C) Cartel
D) Merger
Answer: A) Conglomerate
Which government agency is responsible for reviewing proposed mergers to determine whether they may substantially lessen competition?
A) Office of Fair Trading (OFT)
B) Department for Business, Energy & Industrial Strategy (BEIS)
C) Competition and Markets Authority (CMA)
D) Trade Standards Agency (TSA)
Answer: C) Competition and Markets Authority (CMA)
The “State Aid Regulations” provide guidelines for:
A) Preventing collusion among competitors
B) Regulating mergers and acquisitions
C) Ensuring fair trading practices
D) Providing government financial assistance to businesses
Answer: D) Providing government financial assistance to businesses
Which competition policy principle seeks to prevent companies from engaging in anti-competitive practices that harm consumers or other businesses?
A) Collusion
B) Abuse of dominance
C) Predatory pricing
D) Market manipulation
Answer: A) Collusion
