Economist Michael Kremer Offered a Unique Solution to the Problem

question 132

Multiple Choice

Economist Michael Kremer offered a unique solution to the problem of deadweight loss created by monopolies that have control of an innovation. What solution did he propose that would leave the drive to innovate uncompromised?

• A) The government should buy the innovation created by the monopoly.
• B) The government should sell a patent to the monopoly that creates the innovative technology.
• C) The government should buy out the rights of the patent from the monopoly and destroy the patent.
• D) The government should place a price control on the monopoly's product.

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Definitions:

Student Loans

Financial aids provided to students to help cover the costs of post-secondary education, which are required to be paid back with interest after graduation.

Pine Ridge Indian Reservation

A reservation home to the Oglala Sioux Tribe, located in South Dakota, historically significant for its role in Native American history and ongoing struggles.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

75 Percent

This key term lacks context on its own and therefore cannot be provided with a specific definition without additional information. NO.