Final answer:
2. The decrease in regulations in the U.S. allows for more competitive markets, and government has historically played a significant role in transportation system development.
3. There are both benefits and downsides to deregulation, including increased competition and innovation, versus potential market unfairness and reduced safety oversight.
Step-by-step explanation:
2. When regulations decrease in the United States, such as through the deregulation enacted under President Jimmy Carter, it often results in a more competitive environment for various industries. The deregulation of transportation allowed companies to freely set rates and choose routes, stimulating competition. In the context of transportation systems development, the government often plays a pivotal role. This includes granting concessions for land and supporting the infrastructure for railroads during the period of industrialization, setting the groundwork for the regulatory framework in the early 20th century.
The fall of political patronage and the movement towards merit-based systems also shaped the role of government in sectors like transportation. Historical deregulation in areas such as the telecommunications industry, previously dominated by AT&T as a regulated monopoly, was possible due to technological advances like wireless phones, which changed the market dynamics and the associated costs.
3. Benefits of such deregulation include increased competition, innovation, and consumer choice, while the drawbacks can encompass less oversight, potential for unfair practices, and risks to consumer safety. The review questions touch on antitrust policies, whose goal is to prevent anti-competitive behavior and ensure a fair marketplace, and corporate matters such as mergers and acquisitions. The concept of a four-firm concentration ratio is crucial for understanding competition levels in an industry, with a high ratio indicating less competition.
Last century's shift from multiple competing city bus companies to often a single subsidized and regulated entity might have been influenced by factors like increased regulation, market consolidation, or shifts in public policy favoring public transit systems as subsidized monopolies to ensure service continuity and coverage.