The Level of Industry Demand

question 63

Multiple Choice

The level of industry demand:

• A) has little effect on competition in the industry.
• B) is one of the determinants of the intensity of rivalry in the industry.
• C) increases when customers exit a marketplace.
• D) does not impact the market share that established companies hold.
• E) decreases the rivalry among established companies, when in decline.

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Definitions:

Pork-Barrel Legislation

Government spending or appropriations that are intended to benefit constituents of a politician in return for their political support, often through local or state projects that are not necessarily needed.

Logrolling

A political process where lawmakers exchange support for each other’s legislative bills or policies, often leading to the passage of legislation that might not otherwise succeed on its own merits.

Earmarks

Designated funds in a budget that are set aside for specific projects or purposes, often at the direction of lawmakers.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many individuals simultaneously without diminishing the good's availability to any single user.