Barriers to Entry in Economics: Definition, Types & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

In terms of economics, barriers to entry are _____.

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1. Ebay's success represents which of the following barriers to entry for another company in the same space?

2. Which of the following is a barrier to entry?

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About This Quiz & Worksheet

This quiz and corresponding worksheet will help you gauge your understanding of the main barriers in economic markets. Topics you'll need to know to pass the quiz include understanding what 'barrier to entry' means and what are some of the main examples of these barriers.

Quiz & Worksheet Goals

Use these assessment tools to assess your knowledge of:

  • The essential meaning of barriers to entry
  • Examples of common barriers to entry
  • How government regulations and licensing relate to barriers of entry
  • The challenges faced by telecommunication, auto and computer chip industries

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Defining key concepts - ensure that you can accurately define main phrases, such as barrier to entry
  • Reading comprehension - ensure that you draw the most important information from the related lesson on barriers to entry in economics
  • Interpreting information - verify that you can read information regarding industries with significant barriers and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about examples of barriers to entry

Additional Learning

To learn more about the challenges facing businesses in economic markets, review the corresponding lesson on the Barriers to Entry in Economics. This lesson covers the following objectives:

  • Define 'barriers to entry'
  • Examine government regulation, start-up costs, technology and economies of scale as barriers
  • Review the barrier of product differentiation, and define 'network effect'
  • Understand how access to supplies and distribution channels poses a barrier to entry
  • Recognize the barrier created by competitive response
  • Explore some examples of barriers facing the telecommunications and computer chip industries
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