Table 22-1 -Refer to Table 22-1. Based on the Table Above, Which

question 75

Multiple Choice

Table 22-1

-Refer to Table 22-1. Based on the table above, which country has a higher standard of living and why?

• A) Sweden has a higher standard of living because their GDP is higher.
• B) Ireland has a higher standard of living because their GDP per capita is higher.
• C) Sweden has a higher standard of living because their GDP per capita is higher.
• D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.

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Definitions:

Deregulate

The process of removing or reducing government regulations or restrictions in an industry to allow for more freedom and competition.

Natural Monopoly

An industry in which economies of scale are so great that a single firm can produce the industry’s product at a lower average total cost than would be possible if more than one firm produced the product.

Horizontal Market

A market that appeals to a wide range of consumers across different industries or sectors.

Contestable Market

A market with no barriers to entry or exit, where a company's prices and output are constrained by the threat of new entrants or competition rather than by existing competitors alone.