221. Describe what else can be used instead of money as a store of value

266. Explainwhat problems would exist in a purely competitive economy.
266. A market economy creates the necessary environment for competition. This environment, most first of all, the existence of various forms of ownership and management and their based on mutual equality. In addition, the freedom of action, everyone Having a choice also opens up a wide range of opportunities for competition.
In Western countries, this environment has been formed for many years.
In addition to the obvious advantages of perfect competition, there are also disadvantages in the process of market development in one or another sphere of economic life, ease of monopolies. Perfect competition is quickly imperfect
can become competitive. This is the abolition of economic pluralism, economic democracy leads to Economic democracy is the basis of political democracy. Therefore for industrialized Western countries in the late 19th century, primarily in the United State realized the need to prevent the emergence of monopolies. In the economy free competition is limited by the emergence of a tendency to monopolize. Healthy competition the participation of the state in the creation of the environment becomes a necessity. This is the antitrust policy of the state is done through. This policy is primarily in the adopted antitrust laws represented by Antimonopoly legislation in the world is brought to the U.S. in a relatively perfect manner admitted. The United States has a wealth of experience in this area. U.S. Antitrust The legislation is based on three basic laws adopted in this regard:
267. Describe four characteristics of monopoly.
Monopolies can be defined as: monopolies are associations of large enterprises that dominate industries, markets, and the overall macroeconomy in order to set high prices and monopolize high profits.
Monopoly (Greek mono - alone, poleo - sell) - a monopoly on one branch of the economy; form of market organization. In such markets, the sole seller operates with his product, and in other industries there is no substitute for such product. M. occurs as a result of the accumulation of the means of production, labor, and the bulk of the products created in the hands of a minority of enterprises, entrepreneurs, or the state. M. appearances have existed since ancient times. Rare lands, mines, reservoirs, forests, and other natural resources were concentrated in the hands of a minority, giving their owners a monopoly, and they became the dominant suppliers of certain products. By its very nature, production stagnates because it can rely on a monopoly position to make a profit without reducing costs, and to take advantage of the absence or weakness of competition to enter the market. M. restricts market relations, so even market economies take anti-monopoly measures. The main forms of M. are cartels, syndicates, trusts, concerns. [1]
The material basis for the emergence of monopolies is the concentration of production. The concentration of production reflects the concentration of means of production, labor, and output in large enterprises. There are 6 types of monopolies: 1.Natural monopoly 2.Legal monopoly 3.Artistic monopoly 4.Aligopoly 5.Monopsony 6.Pure monopoly