Podcast
Questions and Answers
Article 38 of the Spanish Constitution recognizes the freedom of ______ within a market economy.
Article 38 of the Spanish Constitution recognizes the freedom of ______ within a market economy.
enterprise
In a competitive market, businesses compete to attract ______, and the latter freely choose the best offers.
In a competitive market, businesses compete to attract ______, and the latter freely choose the best offers.
consumers
Free competition is the foundation of a market economy, ensuring efficiency, ______, and consumer benefits.
Free competition is the foundation of a market economy, ensuring efficiency, ______, and consumer benefits.
innovation
Even in free-market economies, some sectors are ______ (e.g., price control, licensing requirements).
Even in free-market economies, some sectors are ______ (e.g., price control, licensing requirements).
______ eliminate competition, either by state establishment (e.g., past monopolies on salt and matches in Spain).
______ eliminate competition, either by state establishment (e.g., past monopolies on salt and matches in Spain).
______: Few dominant firms can act like monopolies if they collude to limit competition.
______: Few dominant firms can act like monopolies if they collude to limit competition.
Collusive agreements involve businesses coordinating to avoid ______ (i.e., price-fixing).
Collusive agreements involve businesses coordinating to avoid ______ (i.e., price-fixing).
Abuse of ______ position: A leading firm engages in unfair practices to eliminate competitors.
Abuse of ______ position: A leading firm engages in unfair practices to eliminate competitors.
In recent years there have been ______ efforts in sectors like telecommunications, energy and transport.
In recent years there have been ______ efforts in sectors like telecommunications, energy and transport.
Even though competition is desirable, it is never ______.
Even though competition is desirable, it is never ______.
Flashcards
Freedom of enterprise
Freedom of enterprise
Freedom to conduct business within a market economy, as recognized by the Spanish Constitution.
Competitive Market
Competitive Market
Businesses compete for customers, and consumers can select the best options.
Free Competition
Free Competition
The basis of a market economy, promoting efficiency, innovation, and benefits for consumers.
Oligopoly
Oligopoly
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Collusive Agreements
Collusive Agreements
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Abuse of Dominant Position
Abuse of Dominant Position
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Government Planning
Government Planning
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Monopolies
Monopolies
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Study Notes
- Article 38 of the Spanish Constitution recognizes freedom of enterprise within a market economy.
- In a competitive market, businesses compete for consumers, who freely choose the best offers.
- Free competition is the foundation of a market economy, promoting efficiency, innovation, and consumer benefits.
Limitations to Free Competition
- Competition is desirable but never absolute, facing several restrictions.
- Government planning regulates some sectors even in free-market economies, including price controls and licensing requirements.
- Deregulation efforts have occurred in telecommunications, energy, and transport.
- Monopolies, including those established by the state, eliminate competition.
- Oligopolies, where a few dominant firms collude, can act like monopolies and limit competition.
Anticompetitive Conduct by Business
- Collusive agreements occur when businesses coordinate to avoid competition, such as price-fixing.
- Abuse of dominant position involves a leading firm using unfair practices to eliminate competitors.
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