Why Is It Critical for a Government to Be Recognized

question 62

Multiple Choice

Why is it critical for a government to be recognized as legitimate by its people?

• A) Legitimacy is required in order for a government to shift toward a more authoritarian style of governing.
• B) Legitimacy gives the appearance of a strong government and helps ward off foreign attacks.
• C) Legitimacy helps a government expand its power and influence in times of need or crisis.
• D) Legitimacy is what gives the government the right and ability to make and enforce rules.

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Definitions:

Natural Monopoly

A market condition in which a single company can supply a product or service at a lower cost than any potential competitor, leading to a dominant position that discourages others from entering the market.

Monopoly Power

The ability of a single seller to control market prices and exclude competitors within a particular industry.

Antitrust Policy

Government regulations designed to promote competition and prevent the formation of monopolies or anti-competitive practices.

Price-Fixing

An illegal agreement among competitors to set prices, establish production quotas, or engage in other practices that eliminate or reduce competition within an industry.