A Government-Created Monopoly Arises When

question 196

Multiple Choice

A government-created monopoly arises when

• A)government spending in a certain industry gives rise to monopoly power.
• B)the government exercises its market control by encouraging competition among sellers.
• C)the government gives a firm the exclusive right to sell some good or service.
• D)the government collects taxes in a particular industry.

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Definitions:

Equal Protection

A legal principle under the 14th Amendment of the U.S. Constitution stating that no state shall deny to any person within its jurisdiction the equal protection of the laws.

Interstate Commerce

Trade, traffic, or transportation involving the passing of goods or individuals across state lines within the United States.

Advertising

The act or job of creating promotional materials for goods and services.

Procedural Due Process

A legal principle that ensures fair procedures (like notice and a fair hearing) are followed before the government takes away a person's life, liberty, or property.