Which Was Not a Result of the End of Communism

question 23

Multiple Choice

Which was not a result of the end of communism in Russia?

• A) A higher crime rate and the appearance of a mafia.
• B) A very clear division between the haves and have nots, made clearer by the change to a free-market society.
• C) Short term stability of the economy, with many Western countries eager to invest.
• D) Rapid inflation.
• E) Rising unemployment because of bankrupt companies.

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Definitions:

Elastic Demand

A situation where the demand for a product or service significantly changes in response to price fluctuations, with greater sensitivity indicating higher elasticity.

Single Price

A market condition where a good or service is sold at the same price to all customers, regardless of purchase quantity or location.

Nondiscriminating Monopolist

A monopolist that charges the same price to all customers, as opposed to engaging in price discrimination where different prices are charged to different customers.

Natural Monopoly

A market condition where due to high fixed or startup costs, a single firm can supply a good or service to an entire market at a lower cost than multiple companies.