Which of the following statements is TRUE?
A) Cartels are an important source of economic growth in developing countries.
B) Economists are not opposed to government-created cartels since they usually provide high-quality products and service.
C) One cost of government-sponsored cartels is that people spend resources trying to obtain or maintain a cartel rather than produce better products.
D) Government supported cartels usually mean more innovation.

Question

Quizplus · Accepted Answer

Government-sponsored cartels can be harmful because they encourage resources to be spent on maintaining the cartel rather than on producing improved products or services. This can limit innovation and hinder economic growth.

Which of the Following Statements Is TRUE