If a Government Grants Monopoly Power Through a Patent,it May

question 116

Multiple Choice

If a government grants monopoly power through a patent,it may beneficial from a social perspective because

• A) it may insure fewer consumer products.
• B) it may encourage the development of new products.
• C) it may encourage higher standards of professional ethics.
• D) it may keep down monopoly profits.

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Definitions:

Minimum-Wage Laws

Legislation that sets the lowest hourly wage rate that an employer can legally pay their workers.

In-Kind Transfers

Non-monetary transfers of goods or services provided by governments to individuals as part of social assistance programs.

Elasticity of Labor Demand

A measure of how sensitive the quantity of labor demanded by employers is to a change in the wage rate.

Minimum-Wage Laws

Legislation that sets the lowest hourly wage that employers can legally pay their workers, intended to protect workers from exploitation.