Competition and Free Enterprise Answers

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Innovation allows producers to

create goods that draw consumer attention.

follow restrictions that the government imposes.

avoid competing with similar businesses.

offer warranties for all of their products.

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In a free-enterprise system, producers decide

how much to charge.

which services to buy.

where to shop for goods.

which goods interest them.

Why does the US government create regulatory agencies? Check all that apply.

to create fair competition between producers

to limit the knowledge of certain consumers

to allow producers to have greater freedom

to protect consumers’ health and safety

to prevent the formation of monopolies

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

A restaurant just opened down the block from a movie theater, and the restaurant owner hopes to attract diners after each movie.

A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.

A store that sells sneakers has offered a special deal to customers from a nearby health club.

A federal agency has been created to monitor the production and distribution of food supplements.

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