10
QuizMultiple Choice

Competition and Free Enterprise — Quiz

Question 10 • Economics

Which is an example of regulation in the automobile industry?

Answer
A
the usage of multiple-year warranties to cover repairs
B
the installation of satellite radio systems in some cars
C
the production of hybrid models that conserve gasoline
D
the creation of fuel-efficiency standards for cars

Explanation

Regulation is a rule or standard set by the government that businesses must follow. Fuel-efficiency standards require automakers to meet limits on how much gasoline their cars use, so they are an example of regulation. Satellite radio, warranties, and hybrid models are product or business choices, not regulations.

AI-written and checked against the verified answer.

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