When the Government Imposes a Barrier to Entry in a Market

question 91

Multiple Choice

When the government imposes a barrier to entry in a market,

• A) more resources will be wasted by firms attempting to secure and maintain market power.
• B) the options available to consumers will increase in the protected market.
• C) allocative efficiency will be improved by the reduction of wasteful competition.
• D) consumers will be better able to direct the smaller number of producers to serve their interests.

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Definitions:

Aggression

Behavior intended to harm or intimidate others, either verbally, physically, or psychologically.

Destruction

The process of causing so much damage to something that it no longer exists or cannot be repaired.

Harm Model

A conceptual framework focused on evaluating actions or policies based on the potential harm they cause, often used in ethical decision-making.

Aggression

Behavior intended to hurt or harm others, either physically or psychologically.