The Introduction of Primary Elections Was Meant to Weaken the Power

question 46

True/False

The introduction of primary elections was meant to weaken the power of party leaders.

Grasp the role of systemic risk factors in financial crises.

Differentiate between the creation and trading of financial and real assets.

Understand the mechanics and expectations behind mortgage securities.

Identify and recognize the implications of the agency problem within financial contexts.

---

Definitions:

Oligopoly

A market structure characterized by a small number of firms which dominate the market, leading to limited competition and potentially higher prices for consumers.

Price Leadership

A form of oligopoly in which one dominant firm sets prices and all the smaller firms in the industry follow its pricing policy.

OPEC Cartel

An organization of oil-producing countries that coordinates and unifies petroleum policies to secure fair and stable prices for petroleum producers.

Predatory Pricing

A competitive strategy where a firm sets very low prices with the intention of driving competitors out of the market, or to prevent new entries.