Practice Quiz

CLEP Microeconomics Exam Prep

Category - Microeconomics

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In recent years, Microsoft has been accused of unfair competitive practices and an unequal access to consumers. Another negative consequence of the free-market economy is:
  1. Reduced pricing due to increased consumer choice
  2. Global competition
  3. Lack of adherence to social and environmental goals
  4. Supplies’ shortages
Explanation
Answer - C - Lack of adherence to social and environmental goals is a negative consequence of the free-market economy.

Key Takeaway: While it has a number of advantages, the free-market economy also poses a number of negative consequences. Social consequences such as wage disparities and worker exploitation are common. Also, environmental degradation through the pollution of water and air resources are common under the free-market economy.
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