224k views
4 votes
Which scenario best represents free enterprise ideals in action?

A.The state government mandates that all public schools must buy books and supplies from one provider.
B.The maker of a child-safety device produces the device at the lowest possible cost and charges the highest possible price.
C.The federal government collects income tax money and uses it to maintain a military force.
D.The only dog groomer in a small town makes a profit even though her prices are high and her work is poor quality.

User Luchostein
by
8.4k points

1 Answer

3 votes
B is the best option of free enterprise. Free enterprise means the government is not involved in the affairs of the economy and competition is allowed to occur. Option D doesn't present any competition and therefore without competition free enterprise doesn't exist there. In option B the company is using resources to gain the best cost and profit margin.
User John Larson
by
8.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.