3
QuizMultiple Choice

Economics and Social Studies

Question 3 • MA-US History II CR

How do entrepreneurs cause economic expansion?

Answer
A
by introducing new products that encourage consumer spending
B
by using competition to drive down the prices of consumer goods
C
by replacing government-owned industries with consumer-friendly ones
D
by reducing exports through increasing the availability of locally produced goods

Explanation

Entrepreneurs can expand the economy by creating and selling new products. These products give consumers more things to buy and can encourage additional spending, which supports business activity and economic growth. Competition may lower prices, but that is not the main way described here.

AI-written and checked against the verified answer.

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