Competition and Free Enterprise

Question 1

In a free-enterprise system, producers decide

Revolt · Accepted Answer

how much to charge.

Question 2

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 3

What kind of economy uses a free-enterprise system?

Revolt · Accepted Answer

a market economy

Question 4

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

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lowering prices for customers.

Question 5

Innovation allows producers to

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create goods that draw consumer attention.

Question 6

Carol has decided to advertise her custom-baked cakes in the local paper in the hopes that her sales could go towards purchasing a home.Which incentive of the free enterprise system would help Carol?

Revolt · Accepted Answer

Carol can use the money from her business to achieve her goal.

Question 7

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 8

Jose realized that the only dining options in his community are at local restaurants where the wait time is often excessive. He decides to purchase and operate his own food truck in the area. Which indicates that Jose is exercising free enterprise?

Revolt · Accepted Answer

Jose can control how he conducts his food truck business.

Question 9

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

Revolt · Accepted Answer

Consumers must be knowledgeable.

Question 10

Which group creates regulations in mixed-market economies?

Revolt · Accepted Answer

governments

Competition and Free Enterprise Answers

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