While Smoking Is on the Decline in the United States

question 152

Multiple Choice

While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking. It's because China is eager to protect its own tobacco industry which is a state monopoly. What barriers, if any, exist in this market?

• A) Natural barriers to entry
• B) Ownership barrier to entry
• C) Legal barrier to entry; a government license
• D) Legal barrier to entry; a public franchise

---

Definitions:

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another product or service.

Factor of Production

Inputs used in the production of goods or services in the process of wealth creation, including labor, capital, land, and entrepreneurship.

Human Capital Development

Refers to the process of improving an individual's skills, knowledge, and abilities, typically through education and training, to enhance their productivity and potential in the workforce.