Legislators Often Have Difficulty Passing Legislation with Widespread Benefits, but That

question 22

Multiple Choice

Legislators often have difficulty passing legislation with widespread benefits, but that imposes concentrated costs because those who bear the costs will __________ the legislation, while those who would reap the benefits will __________ the legislation.

• A)protest; actively support
• B)not protest; not actively support
• C)not protest; actively support
• D)protest; not actively support
• E)protest; protest

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Definitions:

Entry Barriers

Factors that prevent or hinder companies from entering a particular market, including high start-up costs, stringent regulations, and established competitors.

Competitive Forces

Elements in the external environment that influence the competitiveness of a company, including rivalry among existing competitors, threat of new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of an enterprise beyond basic financial profit.

Monopoly

A market structure characterized by a single supplier controlling all the supply of a particular good or service.