Competition And Free Enterprise

In a free-enterprise system, producers decide a. how much to charge. b. which services to buy. c. where to shop for goods. d. which goods interest them.

What is one downside for consumers to competition in a free-enterprise system? a. Consumers must be knowledgeable. b. Consumers have limited choices. c. The quality of goods often suffers. d. The price of goods often decreases.

Which is an example of regulation in the automobile industry? a. the creation of fuel-efficiency standards for cars b. the installation of satellite radio systems in some cars c. the usage of multiple-year warranties to cover repairs d. the production of hybrid models that conserve gasoline

Innovation allows producers to a. create goods that draw consumer attention. b. follow restrictions that the government imposes. c. avoid competing with similar businesses. d. offer warranties for all of their products.

What kind of economy uses a free-enterprise system? a. a closed economy b. a command economy c. a market economy d. a traditional economy

In a free-enterprise system, consumers decide a. how to set prices. b. which goods to export. c. which services to buy. d. how to use materials.

In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. This is an example of a. following a federal regulation. b. lowering prices for customers. c. reducing the risk for consumers. d. creating a new or better product.

In free-enterprise systems around the world, there are a. no restrictions on business ownership or business activity. b. some restrictions on business activity but not on business ownership. c. some restrictions on business ownership but not on business activity. d. some restrictions on business ownership and business activity.

In the United States, the government creates laws and regulations that _______business activities to prevent wrongdoing. a. advance b. support c. limit d. terminate

Which group creates regulations in mixed-market economies? a. consumers b. governments c. monopolies d. producers