38
practice examMultiple Choice

Practice Exam

Question 38 • Economics

In a competitive market, an electronics company releases a smartphone that is much faster than older models. This is an example of

Answer
A
reducing the risk for consumers.
B
lowering prices for customers.
C
following a federal regulation.
D
creating an innovative product.

Explanation

A smartphone that is much faster than older models offers a new or improved feature, so it is an innovative product. The question does not say that the company lowered prices, reduced consumer risk, or followed a regulation.

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