The exercise of market power by suppliers in resource markets tends to:
A. reduce income inequality ensuring that all workers receive fair wages.
B. have little impact on the distribution of income.
C. increase income inequality by raising incomes of those able to "rig the market."
D. increase income inequality but is offset by the exercise of market power in product
markets.
Answer: C
You might also like to view...
Evaluate the following two statements: "He is income rich but he is not very wealthy" "He is income poor but he is wealthy"
What will be an ideal response?
Which antitrust act was passed to protect independent retailers from "unfair discrimination" by chain stores?
A) Federal Trade Commission Act B) Robinson-Patman Act C) Sherman Act D) Wheeler-Lea Act
What is the law of comparative advantage, and why is it important in international trade?
Which of the following can be a renewable resource?
a. oil b. timber c. coal d. iron ore e. uranium