Politics

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.

Answer

The quality of goods often suffers.

Download to view full explanation

In a free-enterprise system with competition, one downside for consumers is that the quality of goods often suffers. This is because businesses may prioritize cost-cutting measures to remain competitive, which can lead to compromises in the quality of their products or services. In order to offer lower prices or increase profit margins, businesses may use cheaper materials, reduce product testing, or cut corners in manufacturing processes. As a result, consumers may experience lower product durability, decreased reliability, or diminished overall quality. It is important for consumers to be vigilant and informed about the products they purchase to ensure they are getting the desired level of quality.