Pretest

Question 1

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

Revolt · Accepted Answer

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

Question 2

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

Revolt · Accepted Answer

A state agency has been created to monitor the production and distribution of sports drinks.

Question 3

What is regulation in an economic system?

Revolt · Accepted Answer

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

Question 4

In a free-enterprise system, producers decide

Revolt · Accepted Answer

how much to charge.

Question 5

Which is an example of regulation in the automobile industry?

Revolt · Accepted Answer

the creation of fuel-efficiency standards for cars

Question 6

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

Revolt · Accepted Answer

following a federal regulation.

Question 7

Competition happens when two or more businesses

Revolt · Accepted Answer

fight for the same benefit or gain.

Question 8

Innovation allows producers to

Revolt · Accepted Answer

create goods that draw consumer attention.

Question 9

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

Revolt · Accepted Answer

Consumers must be knowledgeable.

Question 10

In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. This is an example of

Revolt · Accepted Answer

lowering prices for customers.

Pretest Answers

More from this Course

TRY EDGENUITY HACKS