5
QuizMultiple Choice

Competition and Free Enterprise

Question 5 • 2102320-Economics HONORS - Edgenuity Teacher

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?

Answer
C
Carol and the local officials can set the prices of her cakes.
C
Carol can use the money from her business to achieve her goal.
C
Carol can participate in a barter system for goods to goods.
C
Carol can meet a regulation for the number of local services.

Explanation

The profit incentive encourages people to start businesses and earn money to reach personal goals. Carol hopes to use the money from selling cakes to help purchase a home, so the incentive described is her ability to use business earnings toward that goal. The correct choice is “Carol can use the money from her business to achieve her goal.”

AI-written and checked against the verified answer.

Previous
Next