Multiple Choice
Which of the following lists best represents the five basic channels through which consumer goods reach consumers?
21
views
0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following best explains the benefits of the free enterprise system in the United States?
A
It guarantees equal income for all citizens regardless of effort or skill.
B
It encourages competition, leading to greater efficiency and innovation.
C
It eliminates the need for government regulation in all markets.
D
It ensures that all resources are allocated solely by government planners.
Verified step by step guidance1
Step 1: Understand the concept of a free enterprise system, which is an economic system where private individuals and businesses operate with minimal government intervention.
Step 2: Recognize that in a free enterprise system, competition among businesses is a key feature, driving firms to improve efficiency and innovate to attract consumers.
Step 3: Analyze why equal income for all citizens is not a characteristic of the free enterprise system, as income varies based on effort, skill, and market outcomes.
Step 4: Consider the role of government regulation, which is not completely eliminated in a free enterprise system but is limited to ensure fair competition and protect consumers.
Step 5: Understand that resource allocation by government planners is typical of a command economy, not a free enterprise system, where market forces primarily determine allocation.
Related Videos
Related Practice
Introduction to Economics practice set
Problem sets built by lead tutorsExpert video explanations