According to the American System of Economics

question 30

Multiple Choice

According to the American system of economics:

• A) the market of goods and services should remain free, and open to all.
• B) the market of goods and services is not open to those who deliver shoddy goods.
• C) decreased competition will increase consumer choices.
• D) decreased competition will lead to improvement in the quality of goods or services delivered. The heart of the American system of economics is its capitalist approach to business.

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Definitions:

Production

The process of combining various inputs to make goods or services for consumption.

Comparative Advantage

The capacity of an individual or country to manufacture a given good or service more efficiently, incurring lower opportunity costs than their counterparts.

Opportunity Cost

The omission of possible gains that could come from different options when one is preferred.

Comparative Advantage

The competence of an individual, firm, or nation to forge a good or render a service with a lower forfeited opportunity compared to others in the market.