While Smoking Is on the Decline in the United States

question 197

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. How would entry of foreign companies into the tobacco market affect the economic profit of the state monopoly?

• A) Its economic profits would decrease because of increased competition.
• B) Its economic profits would increase because of increased competition.
• C) Its economic profits would decrease because of rent seeking activity.
• D) Its economic profits would increase because of rent seeking activity.

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Definitions:

Preoperational Stage

The second stage in Piaget's theory of cognitive development, where children aged 2-7 years begin to think symbolically but are not yet able to perform operations, or reversible mental actions.

Understanding

The ability to grasp the meaning, significance, or nature of something, often involving comprehension of concepts and relationships.

Sisters

Female siblings who share one or both parents in common.

Sensorimotor Stage

The first stage of Piaget’s theory of cognitive development, where infants learn about the world primarily through their sensory impressions and motor activities.