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.

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Lilliana Griffin

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14 June, 01:46

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.

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Joel Benton · Answer 1

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.