Short answers about Introduction to Political Economy Essay - 1

Short answers about Introduction to Political Economy - Essay Example y of scale, extensive spending on irrecoverable costs over time, taking political actions to exclude competitors, having exclusive ownership/delivery of a specific resource or service, and receiving a legal grant to exercise domination over a market. 3. Companies are motivated to compete with each other by influences such as potential market gains and the economic power that may result. Competition can also produce benefits by casting innovation and advancement as necessities, rather than gratuities. Collusion is a tempting option for companies, especially in markets where only a few businesses tend to dominate. Collusion can result from regular conference calls that necessitate inter-corporate strategizing, can be a means of controlling wages, and allows participants to benefit from the resulting price stability. 4. The regulation of trade presents potential benefits, as well as concessions. Restrictions help to protect companies from competition, particularly on an international basis. However, as a consequence of this security, the spread of unfair policies that favor domestic businesses will surely pose as a barrier to global commerce. Another problem is that markets would become limited as less resources were available due to regulations. 5. Capture theory refers to the tendency for government market regulation agencies to act in the interest of the industry they regulate, rather than the consumers. The result is that the agency head essentially becomes the president of a pseudo-monopoly. The public-interest theory states that the government needs to step in and regulate industry due to the likelihood of the public struggling without guidance, and that this supervision is in the best interest of the people. 6. The ten planks of the communist manifesto include: 1) Abolish private ownership of land, 2) heavily progressive tax system, 3) dismissal of inheritance rights, 4) seizing the property of all dissenters, 5) exclusive government monopoly of credit and