Which Was Not a Result of the End of Communism

question 23

Multiple Choice

Which was not a result of the end of communism in Russia?

• A) A higher crime rate and the appearance of a mafia.
• B) A very clear division between the haves and have nots, made clearer by the change to a free-market society.
• C) Short term stability of the economy, with many Western countries eager to invest.
• D) Rapid inflation.
• E) Rising unemployment because of bankrupt companies.

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Definitions:

Entry Barriers

Entry barriers are obstacles that make it difficult for new firms to enter a market, often protecting existing firms from competition.

Excess Capacity Problem

A situation where a firm has more production capacity than needed to meet demand, leading to inefficient use of resources.

Monopolistic Competition

An economic setup in which several companies offer products that are closely related but not exactly the same, granting them a certain level of influence over the market.

Nash Equilibrium

The situation that occurs in some simultaneous games wherein every player is playing his or her dominant strategy at the same time and thus no player has any reason to change behavior.