Podcast
Questions and Answers
Article 38 of the French Constitution recognizes the freedom of enterprise within a market economy.
Article 38 of the French Constitution recognizes the freedom of enterprise within a market economy.
False (B)
In a competitive market, businesses compete to attract consumers, and consumers are forced to accept predetermined offers.
In a competitive market, businesses compete to attract consumers, and consumers are forced to accept predetermined offers.
False (B)
Free competition is considered detrimental to a market economy, hindering efficiency and innovation.
Free competition is considered detrimental to a market economy, hindering efficiency and innovation.
False (B)
Absolute free competition exists without any limitations in modern market economies.
Absolute free competition exists without any limitations in modern market economies.
Government planning in sectors like telecommunications and energy invariably stifles free-market competition.
Government planning in sectors like telecommunications and energy invariably stifles free-market competition.
Monopolies enhance competition within a market by encouraging more firms to participate.
Monopolies enhance competition within a market by encouraging more firms to participate.
Oligopolies always foster healthy competition as numerous dominant firms vie for market share.
Oligopolies always foster healthy competition as numerous dominant firms vie for market share.
Collusive agreements among businesses promote fair competition by creating a level playing field for all participants.
Collusive agreements among businesses promote fair competition by creating a level playing field for all participants.
Abuse of a dominant position involves a leading firm engaging in fair practices to support smaller competitors.
Abuse of a dominant position involves a leading firm engaging in fair practices to support smaller competitors.
State-established monopolies, such as those historically seen in salt and matches in Spain, foster competitive pricing.
State-established monopolies, such as those historically seen in salt and matches in Spain, foster competitive pricing.
Flashcards
Freedom of Enterprise
Freedom of Enterprise
Freedom to start a business within a market economy.
Competitive Market
Competitive Market
Businesses compete for customers, who freely choose best options.
Free Competition
Free Competition
The basis of a market economy, fostering efficiency and innovation.
Monopolies
Monopolies
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Oligopolies
Oligopolies
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Collusive Agreements
Collusive Agreements
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Abuse of Dominant Position
Abuse of Dominant Position
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Study Notes
- Article 38 of the Spanish Constitution acknowledges the freedom of enterprise within a market economy.
- Businesses compete to attract consumers in a competitive market, where consumers can freely choose the best offers.
- Free competition serves as the base of a market economy, which ensures efficiency, innovation, and consumer benefits.
Limitations to Free Competition
- Competition is desirable but never absolute, it faces restrictions.
- Government planning regulates sectors in free-market economies through price control and licensing requirements
- Deregulation efforts have been made in telecommunications, energy, and transport.
- Monopolies eliminate competition via state establishment
- Oligopolies are when few dominant firms collude to limit competition.
Anticompetitive Conduct by Businesses
- Collusive agreements lead to businesses coordinating to avoid competition, such as through price-fixing.
- Abuse of dominant position involves a leading firm using unfair practices to eliminate competitors.
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