AnswersLHS GoPo-EconomicsCompetition and Free Enterprise

Competition and Free Enterprise Answers

10 verified answers
1
Free Preview

Which situation is the best example of regulation in an economic system?

A
A retail business just opened a new store in a community close to its original location.
B
A small clothing shop slashed it prices to attract customers from a larger department store nearby.
C
A farmers’ market has offered a special deal to customers from a nearby yoga school.
D
A state agency has been created to monitor the production and distribution of sports drinks.
2
Free Preview

Carol has decided to advertise her custom-baked cakes in the local paper in the hopes that her sales could go towards purchasing a home.Which incentive of the free enterprise system would help Carol?

C
Carol and the local officials can set the prices of her cakes.
C
Carol can use the money from her business to achieve her goal.
C
Carol can participate in a barter system for goods to goods.
C
Carol can meet a regulation for the number of local services.
3

Which group creates regulations in mixed-market economies?

A
consumers
B
governments
C
monopolies
D
producers
4

In a free-enterprise system, producers decide

A
how much to charge.
B
which services to buy.
C
where to shop for goods.
D
which goods interest them.
5

In free-enterprise systems around the world, there are

A
no restrictions on business ownership or business activity.
B
some restrictions on business activity but not on business ownership.
C
some restrictions on business ownership but not on business activity.
D
some restrictions on business ownership and business activity.
6

Which situation is the best example of competition in an economic system?

A
A restaurant just opened down the block from a movie theater, and the restaurant owner hopes to attract diners after each movie.
B
A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
C
A store that sells sneakers has offered a special deal to customers from a nearby health club.
D
A federal agency has been created to monitor the production and distribution of food supplements.
7

What is one downside for consumers to competition in a free-enterprise system?

C
Consumers must be knowledgeable.
C
Consumers have limited choices.
T
The quality of goods often suffers.
T
The price of goods often decreases.
8

What kind of economy uses a free-enterprise system?

A
a closed economy
B
a command economy
C
a market economy
D
a traditional economy
9

A frozen foods company changes an ingredient to meet a new government standard. This is an example of

A
following a federal regulation.
B
lowering prices for customers.
C
reducing the risk for consumers.
D
creating a new product.
10

Jose realized that the only dining options in his community are at local restaurants where the wait time is often excessive. He decides to purchase and operate his own food truck in the area. Which indicates that Jose is exercising free enterprise?

A
Jose allows the other dining establishments to set his menu.
B
Jose shares ownership with the local government which will also determine its location.
C
Jose can control how he conducts his food truck business.
D
Jose parks his food truck five miles from the closest eat-in restaurant to avoid competition.

Did you find these answers helpful?

More from this Course

Quiz
10 verified answers

Unit Test

Quiz
10 verified answers

Pre-Test

Quiz
10 verified answers

Competition and Free Enterprise