Question

One of the benefits of competition in an economy is that competition A. always results in higher wages. B. results in economic security. C. results in higher prices. D. creates better and more services.

Answer 1

The answer for that is D. Creates better and more services. In an economy where competition is prevalent, the one that will decide what products a business will produce or what services a business will serve are the consumers. If there is a demand for a certain product, then the producers will produce a supply. So if there is a certain demand for a product, several businesses will try to provide the best one so that they can get the consumers to buy from them. Since the businesses are trying to outdo each other, they will not stop improving their products or services.