Multiple Choice
Which of the following is an example of a reserved power in the context of economics?
0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
In the free-enterprise system of the United States, the government primarily:
A
acts as a regulator to protect consumers and promote competition
B
owns and operates all major industries
C
sets prices for most goods and services
D
eliminates all private property rights
Verified step by step guidance1
Understand the role of government in a free-enterprise system, which is characterized by private ownership and market-driven decisions.
Recognize that in the United States, the government does not own or operate major industries; instead, private individuals and businesses do.
Recall that the government generally does not set prices for most goods and services in a free market; prices are determined by supply and demand.
Identify that the government protects consumers and promotes competition by regulating business practices to prevent monopolies and unfair practices.
Conclude that the primary role of the government in this system is to act as a regulator to ensure fair competition and protect consumer interests.
Related Videos
Related Practice
