Oligopoly Is a Market Structure Characterized By

question 152

Multiple Choice

Oligopoly is a market structure characterized by:

• A)independence in decision making.
• B)interdependence: each firm's decision affects the profit of the other firms.
• C)substantial diseconomies of scale.
• D)a large number of small firms.

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Definitions:

Regressive Tax

At the individual level, a tax whose average tax rate decreases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) falls as GDP rises.

Income Groups

Categories of individuals or households segmented by income levels, often used for statistical analysis and policy design.

Proportional Tax

At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.

Benefits-received Principle

The concept that the amount of taxes an individual pays should be directly proportional to the level of benefits or services they receive from the government.