What are the types of market power? How do they arise?
What will be an ideal response?
There are two types of market power. They are as follows:
a) Legal market power: Legal market power arises when the government grants exclusive production rights to particular firms, thus creating barriers to entry.
b) Natural market power: Natural market power arises when barriers to entry occur naturally. This can happen when a firm owns or controls a key resource necessary for production or when a firm enjoys economies of scale over the relevant range of output.
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Until the Uruguay Round of trade negotiations, which of the following sectors were NOT included in the rules for international trade?
A) Steel and agriculture B) Automobiles and electronics C) Agriculture and apparel D) Steel and textiles E) Automobiles and agriculture
A likely result of the September 11, 2001 terrorist attacks was ________
A) weaker consumer confidence B) lower business confidence C) a leftward shift of the AD curve D) all of the above E) none of the above
Perfect competition is characterized by
A) many buyers and sellers. B) a small number of firms. C) differentiated products of firms in the industry. D) high barriers to entry.
Demographic conditions
a. were much less favorable for the Social Security system in 1950 than is currently the case. b. are currently unfavorable because the number of retirees is growing rapidly as the result of the high birth rate in the United States during 1930-1945. c. will be less favorable for the Social Security system once the baby boom generation begins to retire. d. don't affect the financial status of the Social Security system because it is based on the same principles as private insurance programs.