The Exercise of Market Power by Suppliers in Resource Markets

question 225

Multiple Choice

The exercise of market power by suppliers in resource markets tends to

• A) reduce income inequality, ensuring that all workers receive fair wages.
• B) have little impact on the distribution of income.
• C) increase income inequality by raising incomes of those able to "rig the market."
• D) increase income inequality but is offset by the exercise of market power in product markets.

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Definitions:

Glaciers

Massive bodies of ice that develop on land through the compaction and recrystallization of snow, gradually shifting position over periods.

Groundwater

Water that is held underground in the soil or in pores and crevices in rock.

Lakes

large bodies of water that are surrounded by land and are not part of the ocean.

Atmosphere

The gaseous envelope that surrounds the solid Earth and includes air, clouds, and precipitation.