CXC Study Guide 2026
Everything you need to pass the CXC exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CXC Exam Format at a Glance
📚 CXC Topics to Study (21)
✍️ Sample CXC Questions & Answers
1. Which market structure is characterized by a single seller controlling the entire supply of a good or service with no close substitutes?
A monopoly exists when one firm dominates the entire market with no close substitutes for its product.
2. When firms in an oligopoly secretly agree to fix prices, this is known as:
Collusion occurs when oligopolistic firms secretly cooperate to set prices or output levels, reducing competition to maximize joint profits.
3. Which characteristic distinguishes an oligopoly from other market structures?
An oligopoly is defined by a small number of large firms that are mutually interdependent and together control most of the market.
4. Which of the following is a MECHANICAL process of digestion rather than a chemical one?
Chewing is a mechanical process that physically breaks food into smaller pieces, increasing surface area, whereas chemical digestion involves enzymes breaking molecular bonds.
5. Which market structure best describes the airline industry in the Caribbean?
The Caribbean airline industry is dominated by a small number of large carriers, making it an oligopoly characterized by strategic interdependence.
6. Which of the following business structures is considered a separate legal entity from its owners, meaning the business can own assets, enter contracts, and be sued in its own name?
A limited company (both private and public) is legally incorporated, creating a 'separate legal entity'. This means the company is distinct from its owners (shareholders). This separation is the basis for limited liability, where owners are not personally responsible for the company's debts.