Government Sponsored Monopolies. Lesson Review

Government-Sponsored Monopolies. Lesson Review

Multiple Choice

A government license can create a legal monopoly.

• True
• False

Multiple Choice

Which of these is a type of legal monopoly?

• Government-granted monopoly
• Competitive monopoly
• Artificial monopoly

Multiple Choice

Why are most monopolies considered illegal?

• To prevent unfair business practices and protect consumers
• To maximize profits for the company
• To promote healthy competition and innovation

Multiple Choice

Public utilities are an example of illegal monopolies.

• False
• True

Multiple Choice

What is the main difference between a government-sponsored monopoly and a pure monopoly?

• Free market competition
• Private ownership
• Government intervention

Multiple Choice

A natural monopoly occurs when:

• costs are high but the service is vital for many

• a business operates in multiple countries

• there are multiple suppliers competing in the market

Copyright

Copyrights last for the lifetime of the author plus 70 years.

Multiple Choice

Copyrights last for the lifetime of the author plus 70 years.

• False

• True

Patent

A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. 

Multiple Choice

Patents discourage new inventions.

• False
• True

Multiple Choice

A patent benefits an inventor by:

• Having to share their invention with everyone for free
• Losing all control over their invention and not being able to profit from it
• Having exclusive rights to their invention and being able to profit from it

Trademark

A trademark is a unique symbol or word(s) used to represent a business or its products. Once registered, that same symbol or series of words cannot be used by any other organization, forever, as long as it remains in use and proper paperwork and fees are paid.

Multiple Choice

Trademarks protect specific product designs and company symbols.

• True
• False