8
QuizMultiple Choice

Economic Policy: Influential Theories

Question 8 • * HSA 26-27 Economics

Which statement explains how regulations on prices affect business practices?

Answer
R
Regulations keep prices fair and prevent businesses from establishing monopolies.
R
Regulations keep prices low and help businesses to establish monopolies.
R
Regulations keep prices fair and help businesses to establish monopolies.
R
Regulations keep prices low and prevent businesses from establishing monopolies.

Explanation

Price regulations set limits or rules on what businesses may charge, helping ensure prices are fair for consumers. They can also discourage monopolies from using their market power to control prices. The correct choice is “Regulations keep prices fair and prevent businesses from establishing monopolies.”

AI-written and checked against the verified answer.

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