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QuizMultiple Choice

Comparing Economic Systems — Quiz

Question 1 • Economics (Full-Year)

What is one effect of monopolies on market economies?

Answer
A
increased prices
B
decreased unemployment
C
decreased demand for products
D
increased economic choices

Explanation

A monopoly has little or no competition, so it can often charge customers higher prices. Therefore, one effect of monopolies on market economies is increased prices. More competition, not monopoly, generally gives consumers more choices.

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