Which of the following is a NOT a major setback for free-market economies?

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There is no guarantee of consumer protections.
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Businesses are motivated by profits, not ethics.
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Monopolies will form and squash competition in markets.
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Competition hurts consumers by driving up prices and preventing research and development.

1 answer

The statement "Competition hurts consumers by driving up prices and preventing research and development" is NOT a major setback for free-market economies. In fact, competition is typically viewed as a positive force in free markets, as it tends to lower prices, improve quality, and encourage innovation and research and development. The other statements, however, highlight genuine concerns associated with free-market economies.