ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government’s tax code.
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The process of “dollar voting".
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The guiding function of consumer needs and preferences.
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Profitable returns to innovative firms.
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Detailed explanation-1: -The competitive market system: A. encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques.
Detailed explanation-2: -Most economic decisions are made by buyers and sellers, not the government. A competitive market economy promotes the efficient use of its resources. It is a self-regulating and self-adjusting economy. No significant economic role for government is necessary.
Detailed explanation-3: -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-4: -The competitive market system: Encourages innovation because successful innovators are rewarded with economic profits.