Trusts and Monopolies Quiz

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Questions and Answers

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?

  • 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?

  • 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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