2
QuizMultiple Choice

Competition and Free Enterprise — Quiz

Question 2 • Economics

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

Answer
A
The price of goods often decreases.
B
The quality of goods often suffers.
C
Consumers have limited choices.
D
Consumers must be knowledgeable.

Explanation

Competition often gives consumers lower prices and more choices, so those are generally benefits rather than downsides. But consumers need to compare products, prices, and quality to make a good decision. Therefore, “Consumers must be knowledgeable” is the downside.

AI-written and checked against the verified answer.

Previous
Next