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Definitions of Firms And Industry - SS1 Economics Past Questions and Answers - page 1

1

What is a firm?

A

A group of individuals

B

An organization that produces and sells goods or services for profit

 

 

 

C

A non-profit organization

D

A government agency

correct option: b
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2

What is an industry?

 

A

A group of individuals

B

 An organization that produces and sells goods or services for profit

C

A non-profit organization

 

D

A group of firms that produce similar goods or services

correct option: d
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3

Which of the following is not a characteristic of a firm?

A

 Produces goods or services

 

B

Sells goods or services for profit

 

 

C

Non-profit

D

An organized group of individuals

correct option: c
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4

Which of the following is not a characteristic of an industry?

A

Group of firms 

B

Similar goods or services produced  

C

Non-profit. 

 

D

Sector

correct option: c
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5

Which of the following best describes a firm?

A

 A group of individuals that come together for a common cause

B

A sector of the economy

 

C

An organization that produces and sells goods or services for profit

D

A group of firms that produce similar goods or service

correct option: c
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6

Define a firm.

 

A firm is a single business entity that produces and sells goods or services.

 

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7

Define an industry.

 

An industry is a collection of firms that produce similar goods or services and compete with each other in the market.

 

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