Which of the Following Can Limit or Even Foreclose Entry

question 39

Multiple Choice

Which of the following can limit or even foreclose entry to industries with such controls as license requirements?

• A) Equal opportunity employer
• B) Federal trade commission
• C) Government policy
• D) Securities and exchange commission

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Definitions:

Normal Good

A good for which demand increases as the income of the consumer increases, and vice versa, holding all other factors constant.

Income Effect

The change in consumer demand for goods and services induced by a change in income, affecting the purchasing power of the consumer.

Substitution Effect

The change in consumption patterns due to a change in relative prices, prompting consumers to substitute one good for another.

Giffen Good

A rare type of good whose demand increases as its price increases, violating the basic law of demand, typically due to the absence of close substitutes.