14
QuizMultiple Choice

Market Structures and Competition — Unit test

Question 14 • * HSA 26-27 Economics

Which best describes how the government enables government monopolies to exist?

Answer
A
by issuing a patent
B
by allowing natural monopolies to exist
C
by creating and running a monopoly
D
by owning the means of production

Explanation

A government monopoly exists when the government itself provides a good or service as the sole supplier. It enables this by creating and running the monopoly, rather than merely allowing a natural monopoly to develop or granting a private firm a patent.

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