Question

1. the united states government encourages competition in the economy because competition

a. ○ helps to increase the standard of living
b. ○ helps lead to a recession
c. ○ means scarcity of resources
d. ○ helps control americas resources

Explanation:

• Option A: In a competitive economy, businesses strive to improve efficiency, innovate, and offer better products at lower prices. This leads to increased productivity, higher incomes, and better access to goods and services, thus raising the standard of living.
• Option B: Competition generally stimulates economic growth, not recessions. Recessions are caused by factors like decreased demand, financial crises, etc.
• Option C: Scarcity of resources is a fundamental economic problem, not a result of competition. Competition is about how resources are allocated among producers.
• Option D: Competition is about firms competing in the market, not about controlling national resources (which is more related to government policies or monopolistic/oligopolistic control, not competition).

Answer:

A. helps to increase the standard of living