When the markets of an economy are more competitive, economic growth
A) is harmed by the resulting low rates of profit for industry.
B) is enhanced because producers have a stronger incentive to provide goods efficiently.
C) will be slower because prices do not rise as rapidly.
D) is unaffected.

Question

Quizplus · Accepted Answer

When markets are more competitive, producers have a stronger incentive to provide goods efficiently in order to keep their costs low and attract customers with lower prices. This leads to a more productive use of resources, which enhances economic growth.

When the Markets of an Economy Are More Competitive, Economic