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AssignmentMultiple Select

Competition and Free Enterprise

Question 1 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Which ideas or situations are consistent with the concept of free enterprise? Check all that apply.Consumers overwhelmingly prefer one sandwich shop to another.Local officials decide how much gasoline consumers can buy.A hair stylist decides to reduce prices on his services.A worker at a factory decides to take another job for higher pay.A government takes control of a nation's restaurant industry.A business owner decides to offer a new product for sale.

Answer
A
Consumers overwhelmingly prefer one sandwich shop to another.
B
Local officials decide how much gasoline consumers can buy.
C
A hair stylist decides to reduce prices on his services.
D
A worker at a factory decides to take another job for higher pay.
E
A government takes control of a nation's restaurant industry.
F
A business owner decides to offer a new product for sale.

Explanation

Free enterprise allows consumers, workers, and business owners to make economic choices. Consumers preferring one sandwich shop, a stylist setting lower prices, a worker changing jobs for better pay, and an owner offering a new product all reflect those choices. Officials limiting how much gasoline people can buy and the government taking control of an industry are forms of government control, not free enterprise.

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