Which of the Following Is NOT an Advantage of a Free-

question 60

Multiple Choice

Which of the following is NOT an advantage of a free- market economy?

• A) The profit incentive encourages efficiency in production.
• B) The economy can respond quickly to changes in demand.
• C) Competition can keep prices down.
• D) There may be little competition between firms.

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Definitions:

Economic Value

An estimation of the benefit provided by a good or service to an economic agent.

Interest Rate

The percentage at which interest is charged or paid on borrowed funds, typically expressed as an annual percentage rate.

Equivalent

Identical in worth, quantity, role, significance, or rank.

Equivalent Values

Items or amounts that are equal in value, function, or meaning.