Answers LHS GoPo-EconomicsCompetition and Free Enterprise

Competition and Free Enterprise Answers

0 verified answers

What kind of economy uses a free-enterprise system?

a closed economy

a command economy

a market economy

a traditional economy

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

A restaurant just opened down the block from a movie theater, and the restaurant owner hopes to attract diners after each movie.

A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.

A store that sells sneakers has offered a special deal to customers from a nearby health club.

A federal agency has been created to monitor the production and distribution of food supplements.

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.

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

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.

Did you find these answers helpful?

More from this Course