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5. The role of the dictator can perhaps be compared to that of the monopolist, in that both earn rents which they try to protect, either by spending on police and security services (dictator) or by creating barriers to entry (monopolist). In what important respects do these rent-seekers differ? i) The monopolist is a private firm and subject to government regulation, whereas the dictator is the government. The state is always more powerful than an individual firm. ii) The dictator is looking to maximise benefits to himself, and possibly his family and various interest groups. iii) Some of the barriers to entry used to protect monopoly rents (e.g. economies of scale, innovation) yield some economic benefits. This not true for the dictatorship. iv) Unlike the monopolist, the dictator will seek to maximise long-run rents by staying in office for as long as possible. a) i and ii b) iii and iv c) i and iii d) ii and iv 6. A governing elite has been in power for many years because the opposition is divided, even though opinion polls suggest it has little popular support. The opposing party then changes its leader and begins to look like a possible alternative government. How would you modify the figure to show the new situation facing the governing elite? a) The duration curve will shift to the left. b) The duration curve will become flatter. The intersection with the vertical axis will be below the original position. c) The governing elite will have to spend more on police and security to protect itself. If they judge this correctly, there is no need to modify the duration line. d) The elite will be able to take less in taxes so there must be some leftward movement of the duration curve