ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumers are able to buy goods for the best available price.
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People pay much higher prices for goods.
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There are frequent shortages of goods on the market.
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Producers refuse to sell some of their products.
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Detailed explanation-1: -Healthy market competition is fundamental to a well-functioning U.S. economy. Basic economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation.
Detailed explanation-2: -Market economies work using the forces of supply and demand to determine the appropriate prices and quantities for most goods and services in the economy.
Detailed explanation-3: -It has the potential to drive costs (and prices) up. Marketing costs are increased and producers will try to pass these on to their customers. Inventions and innovations cost producers in time and research and development in order to be in front of their competitors.
Detailed explanation-4: -Why does a free market economy result in the availability of a wider variety of goods and services? Free markets offer a wider variety of foods and services than any other system, because producers have incentives to meet consumers’ desires.