Question

question 1 of 24
which scenario best represents free enterprise ideals in action?

a. the federal government collects income tax money and uses it to
maintain a military force.

b. the state government mandates that all public schools must buy
books and supplies from one provider.

c. the only dog groomer in a small town makes a profit even though
her prices are high and her work is poor quality.

d. the maker of a child - safety device produces the device at the
lowest possible cost and charges the highest possible price.

Explanation:

In a free enterprise system, businesses aim to maximize profits by minimizing costs and maximizing revenue (charging the highest price the market will bear) with minimal government intervention. Option A involves government tax and spending (not free enterprise operation). Option B has government mandating a single provider (restricting competition, not free enterprise). Option C describes a monopoly with poor service but no competition driving improvement, while Option D shows a business operating to maximize profit through cost - minimization and price - maximization, which aligns with free enterprise ideals of profit - seeking and market - driven decisions.

Answer:

D. The maker of a child-safety device produces the device at the lowest possible cost and charges the highest possible price.