Question

what is one downside for consumers to competition in a free - enterprise system?
○ consumers must be knowledgeable.
○ consumers have limited choices.
○ the quality of goods often suffers.
○ the price of goods often decreases.

Explanation:

• Analyze each option:
• In a free - enterprise system with competition, there are many products and services. Consumers need to be knowledgeable to compare and make good choices, which is a downside.
• In a competitive free - enterprise system, consumers usually have more choices, not limited, so this option is wrong.
• Competition usually drives businesses to improve quality to attract consumers, so the quality of goods does not often suffer, this option is wrong.
• A decrease in the price of goods is generally a benefit for consumers, not a downside, so this option is wrong.

Answer:

A. Consumers must be knowledgeable.