10
practice testMultiple Choice

Practice Test

Question 10 • Economics

Which situation best reflects the concept of free enterprise?

Answer
A
Local officials set the prices for all the gas stations in a community.
B
The government decides the minimum wage for all airline workers.
C
Consumers have a choice between two bakeries in a single city block.
D
An agency determines which supplements are safe for people to buy.

Explanation

Free enterprise allows businesses to compete and consumers to choose what to buy. Having two bakeries in the same block gives consumers a choice between competing businesses, so A best reflects free enterprise. The other situations describe government agencies or officials making rules or setting prices.

AI-written and checked against the verified answer.

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