The foundational model of digital commerce — from a search query to a completed transaction.
Multiple Choice Questions (MCQ)
Question 1 [Multiple Choice]
When a user types a query into Google and clicks an organic result, which of the following BEST describes what has happened?
- A. The user has clicked a paid advertisement purchased by a business.
- B. The user has found a result that Google's algorithm ranked as relevant and trustworthy.
- C. The business has paid Google a fee for each click on that result.
- D. Google has randomly selected a website to display from its index.
Question 2 [Multiple Choice]
A local restaurant appears on the first page of Google Maps results when users search 'restaurants near me'. This visibility is MOST likely the result of:
- A. The restaurant purchasing Google Ads campaigns.
- B. The restaurant having a verified and optimised Google Business Profile.
- C. The restaurant having the largest advertising budget in the area.
- D. Google selecting businesses randomly based on opening hours.
Question 3 [Multiple Choice]
Which of the following BEST explains why online businesses place significant value on user data such as browsing history and purchase behaviour?
- A. To comply with government regulations requiring businesses to monitor users.
- B. To share user information with third-party organisations for revenue.
- C. To personalise advertising and user experiences in ways that increase the likelihood of conversion.
- D. To prevent users from visiting competitor websites.
Question 4 [Multiple Choice]
A customer visits an online clothing store, adds items to their cart, but leaves without purchasing. The store then shows this customer advertisements for those same items on other websites they visit. This is an example of:
- A. Email marketing automation.
- B. Search engine optimisation.
- C. Retargeting advertising.
- D. Organic social media marketing.
Question 5 [Multiple Choice]
In the context of internet commerce, 'conversion' MOST accurately refers to:
- A. The process of converting a website from one technology platform to another.
- B. A visitor completing a desired action, such as making a purchase or submitting a form.
- C. The rate at which website visitors are converted into social media followers.
- D. The technical process of converting image file formats for web use.
Question 6 [Multiple Choice]
A business earns money each time a user clicks on an advertisement displayed on the business's website. This model is commonly referred to as:
- A. Subscription-based revenue.
- B. Direct commerce.
- C. Pay-per-click advertising revenue.
- D. Affiliate commission.
Question 7 [Multiple Choice]
Which of the following MOST accurately describes what a search engine does when it 'crawls' the internet?
- A. It displays advertisements to users based on their browsing history.
- B. It uses automated programs to discover and read web pages, adding them to its index.
- C. It monitors user keystrokes to understand search behaviour.
- D. It deletes outdated web pages from its results automatically.
Question 8 [Multiple Choice]
A business selling handmade jewellery wants customers to find their products when searching online. The MOST cost-effective long-term strategy to achieve this would be:
- A. Purchasing sponsored posts on every available social media platform.
- B. Creating a well-structured website with relevant, high-quality content that search engines can index.
- C. Sending physical catalogues to households in the local area.
- D. Registering the business on as many online directories as possible regardless of relevance.
Short Answer Questions
Question 9 [Short Answer — approximately one paragraph]
Describe in your own words what happens between the moment a person types a search query and the moment they click on a result. In your answer, identify at least two roles that technology plays in this process.
Write your answer here.
[Application — assesses understanding of the search process end-to-end]
Question 10 [Short Answer — approximately one paragraph]
A small bakery has no online presence. Based on what you have learned in this module, identify two ways that potential customers are currently finding their competitors online instead of them. For each, suggest one specific action the bakery could take to address this.
Write your answer here.
[Application — assesses ability to connect internet economy concepts to a real business situation]
Question 11 [Short Answer — approximately one paragraph]
Explain the difference between a business that earns money by selling products directly to customers online, and one that earns money through advertising on its website. Give one advantage and one disadvantage of each model.
Write your answer here.
[Application — assesses understanding of different internet business models]
Discussion and Essay Questions
Question 12 [Discussion / Essay — extended response]
The internet economy is sometimes described as creating 'winner-takes-all' markets, where one or two dominant platforms capture most of the value in a category. Using examples from what you have studied, discuss whether this is a fair characterisation of how the internet economy operates, and what implications this has for smaller businesses.
Write your answer here. For extended essays, continue on a separate sheet.
[Critical thinking — no single correct answer; assesses ability to evaluate structural dynamics]
Question 13 [Discussion / Essay — extended response]
Some people argue that personalised advertising online is a valuable service that helps users find products relevant to them, while others argue that it represents an unacceptable invasion of privacy. Drawing on your understanding of how the internet economy works, present the strongest arguments on both sides of this debate.
Write your answer here. For extended essays, continue on a separate sheet.
[Critical thinking — assesses ability to reason about ethical dimensions of internet commerce]