One Argument for Allowing Monopolies to Exist Is

question 31

Multiple Choice

One argument for allowing monopolies to exist is:

• A)it would be inefficient to break up natural monopolies into smaller units.
• B)monopolies lead to net economic benefits as a rule.
• C)the free market acts as a more effective regulator than the government.
• D)they allow for greater standardization of products and improved quality control.

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Definitions:

Backed by Gold

A financial system or currency that has its value directly linked to gold reserves, ensuring its stability and security.

Federal Open Market Committee

The branch of the Federal Reserve System responsible for overseeing the nation's open market operations and managing the money supply and interest rates.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits.

Discount Rate

The interest rate charged by central banks for short-term loans to commercial banks, influencing monetary policy and the supply of money in the economy.