37
practice examMultiple Choice

Practice Exam

Question 37 • Economics

Which describes an example of the economic system known as free enterprise?

Answer
A
People are free to shop around for products, but manufacturers dictate what is available.
B
Government regulations ensure that everyone has the freedom to shop for the best deals.
C
People are free to shop for the best price on products because there is open competition.
D
Government oversight of business gives people freedom to shop for the best deals.

Explanation

Free enterprise is based on competition among businesses and consumers’ freedom to choose what to buy. When businesses compete, people can compare products and prices and shop for the best deal. Choice D describes this open competition; the other choices emphasize government control or manufacturers dictating what is available.

AI-written and checked against the verified answer.

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