Question

In market economies, individuals have a high degree of economic freedom. Which statement describes a cost associated with economic freedom?

A) The government determines how economic questions are answered.
B) Consumers have the right to choose which products they buy.
C) An entreprenuer risks failure.
D) Markets sets prices of goods.

Answer 1

Is letter D “Markets sets prices of goods”

Answer 2

The correct answer is C) An entrepreneur risks failure.

In market economies, individuals have a high degree of economic freedom. The statement that describes a cost associated with economic freedom is "an entrepreneur risks failure."

This is a great risk in market economies because entrepreneurs are the kind of people that dares to open a new business, to invest their money to create a company and jobs, without a 100% real assurance that they are going to be successful. But that is how this country has grown and developed, through the risk of brave people that dared to invest their money.