Multiple Choice Questions

Which situation is the best example of competition in an economic system?
  • A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
  • Regulation is the placing of limits or restrictions on business activity by the government.
  • the creation of fuel-efficiency standards for cars
  • Consumers must be knowledgeable.
Which is an example of regulation in the automobile industry?
  • some restrictions on business ownership and business activity.
  • the creation of fuel-efficiency standards for cars
  • Regulation is the placing of limits or restrictions on business activity by the government.
  • Consumers must be knowledgeable.
What is one downside to competition in a free-enterprise system?
  • Consumers must be knowledgeable.
  • a market economy
  • A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
  • the creation of fuel-efficiency standards for cars
Why does the US government create regulatory agencies? Check all that apply.
  • 1,4,5
  • Consumers must be knowledgeable.
  • A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
  • Limit
In free-enterprise systems around the world, there are
  • Consumers must be knowledgeable.
  • some restrictions on business ownership and business activity.
  • the creation of fuel-efficiency standards for cars
  • a market economy
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
  • Limit
  • Consumers must be knowledgeable.
  • some restrictions on business ownership and business activity.
  • lowering prices for customers.
In the United States, the government creates laws and regulations that business activities to prevent wrongdoing
  • 1,4,5
  • some restrictions on business ownership and business activity.
  • Limit
  • lowering prices for customers.
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Multiple Choice Questions
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