A Right Granted to a Firm by Government That Permits

question 32

Multiple Choice

A right granted to a firm by government that permits the firm to provide a particular good or service and excludes others from doing the same is called

• A)a natural monopoly.
• B)a comparative advantage.
• C)an economy of scale.
• D)a public franchise.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Rival Nation

A country that competes with another, often in economic, military, or technological aspects.

Mercantilism

An economic theory and practice that promotes government regulation of the nation's economy to increase state power at the expense of rival national powers.

Trade Surplus

A situation where a country's exports exceed its imports over a given period.