3
lesson pretestMultiple Choice

Pretest

Question 3 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

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 owning the means of production
D
by creating and running a monopoly

Explanation

A government monopoly exists when the government itself establishes and operates a business as the sole provider of a good or service. Therefore, the best description is “by creating and running a monopoly.” A patent gives a private inventor exclusive rights, while allowing a natural monopoly is not the same as the government creating and operating one.

AI-written and checked against the verified answer.

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