Answers EAP-Economics and Personal Finance BCompetition and Free Enterprise

Competition and Free Enterprise Answers

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In a free-enterprise system, consumers decide

how to set prices.

which goods to export.

which services to buy.

how to use materials.

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In free-enterprise systems around the world, there are

no restrictions on business ownership or business activity.

some restrictions on business activity but not on business ownership.

some restrictions on business ownership but not on business activity.

some restrictions on business ownership and business activity.

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

following a federal regulation.

lowering prices for customers.

reducing the risk for consumers.

creating a new product.

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

Consumers must be knowledgeable.

Consumers have limited choices.

The quality of goods often suffers.

The price of goods often decreases.

What are aspects of a free-enterprise system? Check all that apply.Private ownership of property is severely restricted.The government has a lot of power and influence.There are few limits on the use of private property.Consumers make all of their economic choices.Producers make all of their economic choices.

Private ownership of property is severely restricted.

The government has a lot of power and influence.

There are few limits on the use of private property.

Consumers make all of their economic choices.

Producers make all of their economic choices.

Innovation allows producers to

create goods that draw consumer attention.

follow restrictions that the government imposes.

avoid competing with similar businesses.

offer warranties for all of their products.

Which group creates regulations in mixed-market economies?

consumers

governments

monopolies

producers

In a free-enterprise system, producers decide

how much to charge.

which services to buy.

where to shop for goods.

which goods interest them.

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?

Carol and the local officials can set the prices of her cakes.

Carol can use the money from her business to achieve her goal.

Carol can participate in a barter system for goods to goods.

Carol can meet a regulation for the number of local services.

What is regulation in an economic system?

Regulation is the placing of limits or restrictions on business activity by the government.

Regulation is the placing of limits or restrictions on business activity by producers.

Regulation is the removal of limits or restrictions on business activity by the government.

Regulation is the removal of limits or restrictions on business activity by producers.

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