MCQ Questions
Q.1.
Which situation is the best example of competition in an economic system?
  • 0%
    A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
  • 0%
    Regulation is the placing of limits or restrictions on business activity by the government.
  • 0%
    the creation of fuel-efficiency standards for cars
  • 0%
    Consumers must be knowledgeable.
Q.2.
Which is an example of regulation in the automobile industry?
  • 0%
    some restrictions on business ownership and business activity.
  • 0%
    the creation of fuel-efficiency standards for cars
  • 0%
    Regulation is the placing of limits or restrictions on business activity by the government.
  • 0%
    Consumers must be knowledgeable.
Q.3.
What is one downside to competition in a free-enterprise system?
  • 0%
    Consumers must be knowledgeable.
  • 0%
    a market economy
  • 0%
    A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
  • 0%
    the creation of fuel-efficiency standards for cars
Q.4.
Why does the US government create regulatory agencies? Check all that apply.
  • 0%
    1,4,5
  • 0%
    Consumers must be knowledgeable.
  • 0%
    A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.
  • 0%
    Limit
Q.5.
In free-enterprise systems around the world, there are
  • 0%
    Consumers must be knowledgeable.
  • 0%
    some restrictions on business ownership and business activity.
  • 0%
    the creation of fuel-efficiency standards for cars
  • 0%
    a market economy
Q.6.
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
  • 0%
    Limit
  • 0%
    Consumers must be knowledgeable.
  • 0%
    some restrictions on business ownership and business activity.
  • 0%
    lowering prices for customers.
Q.7.
In the United States, the government creates laws and regulations that business activities to prevent wrongdoing
  • 0%
    1,4,5
  • 0%
    some restrictions on business ownership and business activity.
  • 0%
    Limit
  • 0%
    lowering prices for customers.