13
practice testMultiple Choice

Practice Test

Question 13 • Economics

Which situation best reflects the concept of free enterprise?

Answer
A
The government decides the minimum wage for all airline workers.
B
Consumers have a choice between two bakeries in a single city block.
C
An agency determines which supplements are safe for people to buy.
D
Local officials set the prices for all the gas stations in a community.

Explanation

Free enterprise allows businesses to compete and consumers to choose what to buy. Having two bakeries in the same block gives consumers a choice between competing businesses, so A best reflects free enterprise. The other situations describe government agencies or officials making rules or setting prices.

AI-written and checked against the verified answer.

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