The Form of Competition Where Just a Few Companies Control

question 186

Multiple Choice

The form of competition where just a few companies control the majority of industry sales is referred to as

• A) pure competition.
• B) cross-market competition.
• C) an oligopoly.
• D) monopolistic competition.
• E) a monopoly.

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Definitions:

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act that fund Social Security and Medicare programs.

Regressive

Pertaining to a tax system in which the tax rate decreases as the taxable amount increases, commonly considered less fair because it imposes a heavier burden relative to income on those with less.

Progressive

Pertaining to a taxation system in which the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy to ensure equity.

Consumption Tax

A tax on the purchase of goods or services, levied at the point of sale, designed to tax spending rather than income or savings.