9
QuizMultiple Choice

Competition and Free Enterprise — Quiz

Question 9 • Economics

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

Answer
A
A state agency has been created to monitor the production and distribution of sports drinks.
B
A farmers’ market has offered a special deal to customers from a nearby yoga school.
C
A small clothing shop slashed it prices to attract customers from a larger department store nearby.
D
A retail business just opened a new store in a community close to its original location.

Explanation

Regulation occurs when a government body oversees or controls economic activity. A state agency monitoring how sports drinks are produced and distributed is an example of government oversight. The other choices describe businesses expanding, competing on prices, or offering a promotion—not regulation.

AI-written and checked against the verified answer.

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