30
QuizMultiple Choice

1.5 Competition and Free Enterprise

Question 30 • (OC27) Economics-2102310-Sem-Meadows

Which is an example of regulation in the automobile industry?

Answer
A
the creation of fuel-efficiency standards for cars
B
the installation of satellite radio systems in some cars
C
the usage of multiple-year warranties to cover repairs
D
the production of hybrid models that conserve gasoline

Explanation

Regulation occurs when the government sets rules or standards that businesses must follow. Fuel-efficiency standards establish a requirement for cars, so creating them is an example of regulation. Satellite radio, warranties, and hybrid models are product features or business choices, not regulations.

AI-written and checked against the verified answer.