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Questions and Answers
What is the main difference between trusts and monopolies?
What is the main difference between trusts and monopolies?
- Trusts control production and distribution, while monopolies have total control over prices. (correct)
- Trusts limit competition, while monopolies give total control over an industry's prices.
- Trusts upset the idea of capitalism, while monopolies have no impact on economic theories.
- Trusts benefit smaller businesses, while monopolies only profit top-level executives.
How do monopolies develop according to the text?
How do monopolies develop according to the text?
- Monopolies develop from competition among small businesses.
- Monopolies develop from trusts and give total control of an industry to one group of companies. (correct)
- Monopolies develop due to government intervention in the economy.
- Monopolies develop from mergers between large and small companies.
What impact do trusts and monopolies have on competition?
What impact do trusts and monopolies have on competition?
- They both promote healthy competition among businesses.
- Trusts promote fair competition, while monopolies stifle competition.
- They both limit competition by giving control to a small group of companies. (correct)
- Trusts limit competition, while monopolies have no impact on competition.
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